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Wow, welcome to the December issue of PQ magazine, can anyone tell me where 2025 went!
As you see from our front cover we are launching the PQ magazine awards this month. Check out pages 16 and 17 on how to enter, you will be surprised just how easy it is. We have a new category for you this year – Student Champion of the Year. We want to recognise someone who is really helping to ensure PQs’ voices are heard. There are lots of other categories too, but remember, as we always say, you got to be in it to win it. So please get nominating.
In other news we focus on ACCA’s decision to ditch remote exams (in areas where it has exam centres). This has shocked many students, and ACCA will need to work hard to convince everyone this is not a backward step. Students sitting the December exams remotely will have to make the most of it as ACCA has said it does not envisage reintroducing remote exams for the foreseeable future. This story may run and run.
We also have the latest ICAEW and CIMA pass rates, and news of the youngest-ever AAT President, in the form of Lucy Cohen.
AML supervision is also changing and we let the accountancy bodies have their say on the changes. Let’s just say they aren’t totally happy and some have welcomed the FCA’s involvement through gritted teeth.
Graham Hambly, Editor and Publisher, PQ magazine
8 ICAEW exam results
4 PQ 2026 awards launched
It’s time you put yourself in the spotlight – so get nominating!
5 ACCA’s remote exam shock
Association says it will only offer remote exam sittings where it does not have exam centres
6 IFAC initiative
Accountancy body wants to help broaden access to the profession
We analyse the latest results –and explain what happened to the PQ who sat five Professional Level exams in September…
9 New AAT President PQ award winner Lucy Cohen becomes youngest-ever AAT President
10 ICAS’ OU first
ICAS has accredited the Open University’s BSc Accounting and Finance degree
12 Tech news
Fewer accountants needed as AI takes over Features, etc
14 Have your say
When it comes to exam tips, ‘hot topics’ are just hot air ; and disquiet about ACCA’s decision to scrap most remote exams. Plus our social media round-up
16 PQ Awards 2026 #1
We launch our awards in this issue – and it’s never too early to get your entry in!
18 PQ Awards 2026 #2
Jennifer Rose explains how becoming a PQ award winner helped her develop her career and expand her horizons
19 Exam technique
Martin Jones explains how sitters should tackle the SBR exam – just answer the requirement
21 CIPFA exams
How might the Internal Rate of Return be examined in the exams?
22 Social mobility
Tim Mickleburgh asks whether it is time to mandate socioeconomic background reporting
23 ACCA spotlight
Why using the ACCA Study Hub will increase your chances of getting qualified
24 CIMA spotlight
Advice for students struggling to balance work and study
25 Sustainability
IFAC’s four key actions needed to help young professionals drive sustainability reporting
26 Tax evasion
Neil Da Costa explains how HMRC is using AI to help it track those who evade tax
28 CPAA spotlight
Meet the organisation focusing on micro accountancy practices
29 ACCA exam tips
We’ve got some tips for the Applied Skills December papers – with thanks to our friends at BPP
32 AAT exams
The suspense account explained by top tutor Karen Groves
34 Money laundering
New proposals on regulation have not been well received – and we have the bodies’ reaction
36 CIPFA spotlight
Finance professionals play a vital role in driving public sector net zero efforts
38 Your career
Top tips on making the most of accountancy jobs boards
39 Careers
What is worrying CFOs and senior finance leaders?; our Agony Aunt tackles another of your workplace issues; and our Book Club review author wants companies to focus on ideas
40 Fun
The lighter side of life – and accountancy
The columnists
Lisa Nelson Why you should jump aboard the AI train 4
Prem Sikka Legislation won’t work without enforcement 8
Anna Kate Phelan How digital exams can help save the planet 10
Rachel Harris Our new columnist on the impact of social media 12
Riding the rails of change
I live a few miles from Cambridge. If you are familiar with the city you may know that the train station is about a mile from the city centre itself. It’s always struck me as curious (and slightly annoying) that it is not more centrally located. Why? Because when the railway first arrived in the 1840s, the university authorities opposed a central location, fearing this disruptive ‘new technology’ on their doorstep and the change it would bring.
It’s odd to think that railways, now considered essential, were once seen as a threat to be kept at bay. So it is today with AI and its impact on the accountancy profession. Change can be daunting, especially when it affects the nature of work and even our professional identities. But history shows us that those who adapt, thrive.
Just as railways transformed travel and commerce, Generative AI is poised to reshape our education and workplaces. We can try to keep it at a distance or we can step on board:
• Skill up: Identify how AI can augment your role and focus on developing complementary human skills.
• Experiment: Try AI tools in a lowrisk environment to understand their potential and limitations.
• Collaborate: Discuss the changes with colleagues. Share ideas and successes.
The ‘digital rails’ are being laid now; let's ensure we are ready to ride them.
Lisa Nelson is Director of Education at Kaplan
ACCA wants your views
ACCA’s annual Global Talent Trends survey was launched at the start of November. It’s the largest career and work survey across the accountancy profession and the association is inviting accountancy professionals everywhere to share their views about their working life right now – not just ACCA students.
The results will form the basis of the Global Talent Trends 2026 report.
PQ awards launched
Nominations are now open for the PQ magazine awards 2026. It really is time to showcase yourself – or someone who has made a real difference to your professional life. We are also introducing a new category for 2026 – Student Champion of the Year, which is open to everyone: students, lecturers, or anyone else who is making a real difference to accountancy trainees.
CIMA pass rates rise
The CIMA August pass rates saw a big jump in both the management and strategic case studies.
In May, the SCS pass rate had slumped to 53%, the worst result since February 2024 when the pass rate was just 50%. For the latest sitting the pass rate shot back up to 61%.
The Management Case Study also saw a healthy jump in the pass rate this time around, to 65%.
There was more good news for
Operational Case study sitters, as the pass rate stayed at 70%.
• Watch out for next month’s issue, when we will publish the OT pass rates for the year.
The PQ magazine awards are a unique night in the accountancy calendar, but you don’t have to take our word for it. After last year’s event Chris Downing, of Sage, said: “A brilliant evening recognising the energy, talent and hard work across the accounting profession. A big thank you for championing the next generation of accounting talent.”
And Eintech’s Anna Kate Phelan commented: “The 2025 PQ awards prove once again why they are the gold standard in recognising achievement, ambition and innovation in accountancy.
The event brought together rising stars, seasoned professionals and visionary educators to celebrate the people and institutions driving the industry forward.”
Check out how you can get your hands on a coveted PQ trophy on page 16
CIMA CGMA case study pass rates Aug25May25Feb 25Nov 24Aug 24
ACCA exam tips at
Too many PM exam sitters are making careless mistakes when answering questions in section A, according to recent examiner feedback.
Sitters are being told to always re-check whether the question asks for cost per unit, total cost or a variance figure. Remember,
The survey is open until the end of the year and there are 15 vouchers worth $100 (UK equivalent) to be won in a prize draw for participants.
It should only take around 10 minutes to complete so come on, share your views at ACCA Global
ICAEW job cuts coming ICAEW is looking to make redundancies, with 147 staff members recently being told their jobs are “at risk”.
your fingertips
incorrect interpretation of the requirement is a frequent reason for losing easy marks.
To score well in what has become the hardest Applied Skills paper you must explain what the figures imply for management and link this back to the organisation’s objectives or performance. Simply
The cost cuts come as part of a major reconstruction at the institute, ahead of a possible merger with CIPFA.
While some jobs are going, the ICAEW is planning to create 100 new positions, and the institute is hoping some of the at-risk staff could be deployed to these.
A big concern is that the list of staff whose jobs are at risk was also sent to other employees affected by possible redundancies. The ICAEW has reported itself to the ICO over this matter.
supplying the calculations without the discussion of their meaning will mean a fail.
You can check out all our December tips for the Applied Skills papers on page 30. The Strategic level tips are on our website
www.pqmagazine.com
Donate an hour’s pay
TaxAid and Tax Help for Older People have merged to create a single charity to help people of all ages with their tax.
The TaxAid name has been retained, and now the charity has kickstarted a campaign to support disadvantaged taxpayers facing the transition to Making Tax Digital for Income Tax SelfAssessment by asking you to donate an hour’s pay.
See how to donate on page 20
Remote exams U-turn
In a shock move ACCA has announced that from the March 2026 it will only offer remote exam sittings where it does not have exam centres.
ACCA recently sent a ‘Withdrawal of remotely invigilated exams’ email to all students who have sat remote exams in the past 18 months.
ACCA’s Alan Hatfield, executive directorcontent, quality and innovation, told PQ magazine: “The vast majority of our students already use exam centres, but we understand this will be disappointing news for some of those who prefer to take their exams remotely. We are making this change because as technology evolves, we have concerns around the ongoing security of remote exams and we want to protect the hard work ACCA students put into earning their qualification. Limiting the volume of remote exams will help us ensure exam integrity, and they will still be available in countries where we do not have exam centre provision.”
This change means most ACCA students from next year will take both their on-demand and session exams in centres.
On its FAQ page ACCA said it does not envisage reintroducing remote exams “for the foreseeable future”.
Students went online to have their say. Some
felt the announcement has come total out of the blue, and many hoped the ACCA would be investing in more centres. As one student put it: “Ridiculous. If they do this then they absolutely need to ensure more centres are available to go to!” Another PQ wondered if they will have enough space with the current set up, and suggested that hundreds of new centres need to be made available.
Students said there is just one centre in Northern Ireland and none in Devon and Cornwall. PQs in Surrey say they travel to London or Brighton to sit exams. One student explained they will have to endure a 280-mile round trip to sit each exam. They had hoped those days had gone and were happy to sit remotely.
A disabled student also wondered if ACCA was making special provisions for them.
The standard and location of some of the current centres was also questioned.
Others students said they would be keenly watching to the March 2026 pass rates to see if they go down.
However, other students seem to feel there was quite a lot of cheating going on remotely. “Looks like a minority cheating have ruined it for the rest of us,” suggested one trainee.
• Check out ACCA’s FAQ page
SUNIL BHANDARI
No more a prince, no more RI!
I leave the country for a break in India, and I come back to see that Prince Andrew has been stripped of his titles and that the majority of students have been stripped of the option to sit their ACCA exams using remote invigilation (RI) from March 26 onwards.
Well, I think the most will agree with me that the King had to take appropriate action to preserve the reputation and integrity of the Royal Family.
However, the removal of RI exams is a major shock. It has certainly taken both students and tutors by surprise. Nothing was signposted.
RI exams came in during the Covid-19 pandemic. In fact, one of my AFM students was within the first cohort in July (not June) 2020. She passed.
Since then, many students have only done RI exams irrespective of a local centre option. It’s a norm to them.
The RI exam option added flexibility of choice. Personally, I would have chosen it if I was a student.
Judging by the noise on social media, many students are not happy.
So why was it withdrawn?
‘As technology evolves, we're concerned about the ongoing security of remote exams.’
Straight from the horse’s mouth.
As the French saying goes, déjà vu.
Time to open the doors wider
To help broaden access into the accountancy profession the International Federation of Accountants (IFAC) has issued a new set of recommended principles.
The newly published ‘Opening Doors: Six Principles of Best Practice to Increase Access to Accountancy Qualifications’ focuses on:
• Encouraging entry from diverse educational backgrounds.
• Recognising and valuing prior work experience.
• Removing unnecessary barriers to access.
• Offering flexible qualification formats and delivery.
• Enabling career step-off points.
• Driving global reciprocity and mobility.
IFAC acknowledges that some bodies have already embedded these principles into their operating models, demonstrating how the principles can broaden access to the profession in practice. For others, IFAC is hoping ‘Opening Doors’ will mark a fresh approach – an opportunity to reimagine
pathways into accountancy and strengthen engagement with future talent.
Lee White, IFAC CEO, said: “The accountancy profession is enriched through talent drawn from the widest breadth possible. I am excited by the opportunity ‘Opening Doors’ creates to engage future talent in new ways and respond to the evolving workplace.
“Our members uphold the highest standards of integrity and quality, and together we are building a broader-based, innovative and connected profession – one that is forwardlooking and equipped to sustain public trust.”
New ACCA results date
ACCA has revealed it has introduced a number of updates to its Practice Platform, which it hopes will deliver a better experience for both students and tutors, and provide greater stability.
Students also need to note that the December 2025 exam session exam results will now be released on Friday 16 January 2026. This is four days later than the publicised 12 January release date. The December
exam results seem to be getting later and later, at a time when students want them earlier! For December 2024 the results were released by ACCA on 6 January 2025.
ACCA said: “We appreciate that this is slightly different to the normal pattern, but this temporary change is necessary to support internal processes and ensure fair and accurate release of exam results.”
What do you think about the merger?
ICAEW is encouraging students and members to have their say about the proposed merger with CIPFA, which was announced at the end of July.
The institute has created a new webpage offering
information on the merger and wants feedback ahead of its next Council Meeting on 9 December.
Alan Vallance, ICAEW CEO, said: “Alongside setting out the background and vision for the merger, we are posing a series of questions
Exam cheat caught
ACCA student Janki Patel was recently removed from the student register and ordered to pay costs of £1,000 after she admitted she took written notes relevant to the exam into the exam hall.
An invigilator found a piece of paper with notes written on both sides under her scrap paper during the SBR exam. The material was taken from the student, who was then escorted out of the exam room.
Patel admitted the possession
of unauthorised material, but maintained that she did not try to use the material and had simply forgotten it was in her pocket, and only realised it was there during the exam.
AAT helping South Yorkshire grow
AAT has been approved as the first accountancy body to join the South Yorkshire Skills Bank.
The Skills Bank supports businesses by providing grants covering up to 60% of training
costs for courses, such as AAT’s Essential and Business Finance Basic course, now available through the Skills Bank Portal.
AAT’s Claire Bennison said: “South Yorkshire is poised for growth and we’re excited to address the national skills shortage which is being firmly felt across South Yorkshire, holding people, businesses and the region back from fulfilling their full potential. Accountancy and finance roles underpin the success of every type of business, regardless of sector..”
to ensure members and students are able to share their views with us.”
One of the FAQs asks if ICAEW will be subsidising CIPFA. The answer is no, as CIPFA already pays the institute for disciplinary services and rent under formal agreements, and each organisation retains ownership of its own assets.
First non-profits global standard
A comprehensive financial reporting for non-profits worldwide, the first of its kind, has been published.
The International Non-Profit Accounting Standard (INPAS) has been six years in the making, with CIPFA and Humentum pushing for a global standard for non-profit organisations.
The standard is freely available and can be downloaded at www.inprf.org
Sunil Bhandari is an AFM tutor at FME Learn Online
Corporate disclosures provide visibility but their full potential can only be realised if they are accompanied by action. The Companies (Directors’ Report) (Payment Reporting) Regulations 2025 is another example of such tendencies. Effective from 1 January 2026, large companies are required to disclose supplier payment practices in their Directors’ Report. They must disclose the average number of days taken to pay supplier invoices, the proportion paid within 30 days, 31 to 60 days, over 60 days, and the proportion not paid within the agreed terms. The legislation does not apply to the public sector possibly because the Procurement Act 2023 requires the bodies to pay suppliers within 30 days.
What is the actual practice? It does not apply to limited liability partnerships, many of which (for example accounting firms) are bigger than large companies.
The disclosures are intended to exert pressure on large companies to improve supplier welfare but may achieve little. A major supermarket may demand extended credit terms from suppliers, with a blunt warning that it won’t stock goods provided by those refusing the new terms. SMEs lack bargaining power and are forced to yield.
Over the years, businesses have reported on executive pay, gender and other issues, but in the absence of political action inequitable distribution of income continues. The same issues apply to supplier payment disclosures. Without political action, creditors won’t see much improvement.
Prem Sikka is Emeritus Professor of Accounting at the University of Essex
Tax briefs
The £2bn LLP tax Accountants, lawyers and GPs who are members of limited liability partnerships could be in the firing line come the budget, according to reports in The Times.
As partners are not deemed employees they escape the 15% employer national insurance charge. Chancellor Rachel Reeves is now considering changing this, and it could raise a whopping £2bn (based on 2020 figures, so it could be much more!).
Tax expert Dan Neidle says
ICAEW exams – less is more!
Why do they do it? One ICAEW student decided to sit five Professional Level exams this September, and they failed every one of them!
The stats are slightly better for the two students who sat four papers. One passed all four, and the other two of the four.
The vast majority of the 4,916 students (2,620) sitting in September opted for one exam, with 74.8% passing. This left 660 ACA PQs with nothing to show for all their hard work.
When it comes to individual papers it was Tax Compliance that
had the highest pass rate this sitting, at 84.8%. And the lowest was FAR (UK GAAP) with 42.9%, although only a tiny number took the paper.
A total of 872 ACA students passed this session, and the overall pass rates were: Audit and Assurance: 79.7%; Business Planning: Banking: 53.5%; Business
A job for the state
HM Treasury has decided to create a Single Professional Services Supervisor (SPSS) for all antimoney laundering (AML) and counter-terrorism financing (CTF) supervision in the UK.
The government believes that a public organisation overseeing professional services firms is the most effective approach to AML/ CTF. And it will be the Financial Conduct Authority (FCA) who will carry out the new supervisory
functions as part of its remit. The FCA will also be tasked with working with the professional services sector, other regulators and law enforcement agencies to improve the UK’s defences against money laundering.
The FCA will carry out these functions independently of HM Treasury and will be provided with the powers necessary to succeed in carrying out this role.
Lucy Rigby, the economic
IFAC appoints new chair
The International Federation of Accountants (IFAC) has announced the appointment of Sinéad Donovan (Ireland) as Chair of the International Panel on Accountancy Education (IPAE).
Donovan (pictured) brings with her a distinguished record in professional leadership and contribution to the accountancy profession. As former Chair and Partner at Grant Thornton
taxing people differently just because of their choice of legal vehicle is “irrational and there’s certainly a principled justification for equalising the position”. He went on: “This is something any Chancellor should consider.”
Directors planned tax fraud
A network of corrupt company directors has been jailed for more than 70 years after they were caught planning an elaborate multimillion-pound tax fraud during
Ireland, she led the firm through transformative growth across multiple international markets.
clandestine meetings.
The company at the heart of the fraud, Winnington Networks Ltd (WNL), deliberately understated how much VAT was owed to HMRC between 2011 and 2014.
Key evidence was secured when WNL’s financial director, Neil Pursell, 60, and other key players were caught conspiring at two hotel meetings held in Manchester and Birmingham in late 2013.
At each meeting the men openly discussed the fraud, the mechanics and how they could just “invent
secretary to the Treasury (pictured) said: “Preventing economic crime requires the ongoing support of regulated firms and professional bodies and I look forward to working with you as we make this change.”
Donovan has been significantly involved in the development of the accountancy profession in Ireland, including terms as President of Accounting Technicians Ireland and Chartered Accountants Ireland (CAI), the latter coinciding with the amalgamation of CAI and CPA Ireland. Her longstanding commitment to accountancy education includes serving as Chair of the Education Board at CAI, where she championed curriculum modernization and university engagement.
the numbers” to falsely offset their output VAT claims.
Tax competitiveness table
When it comes to tax competitiveness the UK is now languishing in 32nd place out of 38 OECD countries, according to the latest International Tax Competitive Index.
In the 2025 edition of the Index Estonia comes first, followed by Latvia, New Zealand and Switzerland.
AAT elects youngest-ever President
Lucy Cohen, the award-winning entrepreneur (she has a PQ magazine award among those), and co-founder of Mazuma, has been appointed AAT President. Cohen, the youngest-ever AAT to hold the position of President, takes on the role with a commitment to championing diversity and inclusion, as well as support for small businesses –areas she says are vital to shaping the future of the accountancy profession.
From delivering sessions at industry events to chairing roundtables on gender parity, she has established herself as
innovative disruptor in this sector. Her Presidency marks a ‘full-circle’ moment, having begun her journey through an apprenticeship with AAT, before launching her now
multi-million-pound business at the tender age of 23.
Cohen said: “My two priorities are simple. I know what it’s like to start out without connections or a head start. The AAT apprenticeship gave me the foundation for everything that followed. It taught me that talent exists everywhere – it just needs the right chance to grow. Every step of the way, AAT has been there, having my back when it counted. Now I want to give back to the professional community that gave me my start.”
Craig Dyer has been appointed Vice President.
ChatGPT more trusted than accountants?
Nearly two-thirds (64%) of UK businesses are now consulting public AI chatbots such as ChatGPT for financial advice before speaking with their accountant, according to new research.
The survey of 500 senior decision-makers across UK accountancy firms, conducted by Ravical for its Accounting in
the Age of AI report, shows that clients are no longer waiting for accountants to take the lead on artificial intelligence. Instead, many are experimenting with the technology themselves.
More than half of accountancy firms reported having to step in and correct inaccurate advice their clients had received from ChatGPT.
A further one in five accountants said they are frequently asked to intervene after businesses rely on chatbot guidance.
The findings highlight that as AI tools like ChatGPT become a go-to resource for businesses, the advice they provide can often be misleading or incorrect, creating extra work and risk for accountants.
Instagram fraud promotion conviction
A student who promoted tax fraud on Instagram has become the first person to be convicted of encouraging others to defraud HMRC on social media.
Habeeb Ajaga, from London, used two Instagram accounts to encourage criminal attacks on VAT systems.
Cybercrime investigators at HMRC’s Fraud Investigation Service worked with the social media company to shut down one of his accounts in 2022, but he opened a second account the following year.
Investigators traced the accounts to Ajaga and he was interviewed under caution in September 2024. The 21-year-old pleaded guilty to two counts of encouraging fraud in August 2025. He was sentenced to 16 months in prison, suspended for two years, during a hearing at Southwark Crown Court on 16 October 2025.
ANNA KATE PHELAN
Digital exams can help save the planet
Accounting as a sector is known for having some great ESG practices in place, and this is something we share in the assessment space. Digital exams aren’t just about making life easier, they can also help to save the planet.
Traditional paper-based tests can quietly harm the environment. Research from the University of Oklahoma shows that paper manufacturing alone accounts for 74% of greenhouse gas emissions linked to exam materials. By moving exams online, institutions could cut emissions by around 9% per test and potentially by more than half as technology improves. Digital exams mean fewer physical exam centres and less travel, which slashes transportrelated emissions.
Accessibility is another huge plus; digital platforms offer tools like text-tospeech, font adjustments, and remote invigilation, supporting students with different learning needs and reducing stress on exam day.
And let’s not forget efficiency: no printing, no courier delays, no storage headaches. Platforms such as Rogo even automate question randomisation and grading, cutting costs and admin time while keeping exams secure.
As universities and professional bodies face growing pressure to meet sustainability targets, digital exams are emerging as a smart, scalable way to go greener. For students, it means fairer, more flexible assessments, and is a meaningful step towards a low-carbon future.
The next time you log in for an online test you’re not just taking an exam, you’re taking part in climate action.
The CASSL Ball Returns
Tickets now on sale for the annual CASSL Ball. Always one of the most anticipated events in the ICAEW student calendar, the ball takes place on 28 February 2026 at the stunning Chartered Accountants’ Hall. It will bring together more than 150 ACA trainees, members and industry guests for an evening of celebration, connection and welldeserved fun – far away from the
spreadsheets!
Last year’s ball was one of the most successful to date, with Afua Kyei, CFO of the Bank of England, sharing her inspiring career journey and reminding everyone that “accountants add far more than just numbers”.
The 2026 ball promises to be just as spectacular, featuring a three-course dinner, live music,
star speakers and an added touch of mystery with the masquerade theme.
This year has been a milestone one for CASSL. From relaunching its mentorship programme with three new partner universities to hosting a range of new joiner social events and proudly representing accountants in the Lord Mayor’s parade, it continues to strengthen its mission of supporting ACA and other accounting trainees across London.
If you’d like to hear more about CASSL events or book ball tickets contact events@cassl.uk
ICAS partners with Open University
ICAS has accredited the Open University’s (OU) BSc Accounting and Finance degree, marking the first time a distance learning programme has been formally recognised by the professional body.
This partnership with the UK’s largest university provides a new, flexible route into the globally respected Chartered Accountant (CA) qualification. The degree is open to learners in over 180
countries worldwide. Graduates can gain up to five exemptions from the first stage of
the Chartered Accountant (CA) qualification through the ICAS Accredited Programme, helping students qualify as a CA faster.
Gail Boag, Executive Director of Learning at ICAS (pictured), said: “By accrediting the OU’s accounting degree we are opening the door for more students from various backgrounds to gain the skills, knowledge and professional recognition needed to build rewarding careers in accountancy.”
AAT training provider awards 2026
The AAT Training Providers Awards returns for its 10th year, celebrating the community’s outstanding achievements. Submissions are now officially open, and you have until Sunday 7 December to enter. The award winners will be announced at the Training Provider Conference and Awards gala dinner on Thursday 19 March 2026. In all, there are 11 categories
to enter, including Student of the Year, Tutor of the Year and Inclusive Training Provider of the Year.
Among last year’s winners were Katy Hickey, who studies at e-Careers (Student of the Year), and Premier Training’s Alan Dawson, who picked up a special recognition award. Kaplan won the Large Training Provider of the Year, and Premier Training the Distance Learning Provider award.
For more go to AAT Training Provider Awards 2026 | AAT
Cost control comes into focus
Cost reduction and cash control are the top two priorities for CFOs for the coming 12 months.
Deloitte’s latest survey of UK CFOs also showed that concerns about the UK’s productivity and competitiveness have risen to the highest level since it began asking the question in 2014.
Ian Stewart, chief economist at Deloitte UK, said: “The focus for CFOs has shifted, with geopolitical anxieties a dominant concern for some time, moderating in the wake of a series of US trade deals. Domestic challenges have moved centre stage, with costs rising and
mounting concerns about UK competitiveness. CFOs have responded by strengthening balance sheets through a focus on cost control, building cash reserves and reducing debt.”
EY can’t stop growing
EY recently unveiled UK fee income of £3.78bn for the financial year ending 27 June 2025 – that’s a 2% revenue growth in what is deemed a challenging market.
Distributable profit per partner increased by 9% to £787,000, with distributable profits before tax increasing 4% to £679m.
EY delivered strong revenue growth of 10% for its Strategy and Transactions business, 5% for Tax and 3% for Assurance, while Consulting revenues decreased 6%, reflecting more
difficult trading conditions. Financial Services and Consumer and Health were EY’s topperforming industry sectors.
Goodbye financial services
One in four Gen Z employees left financial services in the past year, according to research from KPMG. Almost a third (31%) of financial services leaders say retaining Gen Z talent is harder than it was five years ago, suggesting a widespread concern about stagnating retention efforts and the sector’s future talent pipeline. When asked why Gen Z employees were choosing to leave, FS leaders said those leaving had a preference for working in start-ups (42%), and felt there were better opportunities in other sectors (36%).
Anna Kate Phelan is Head of Product at Eintech
RACHEL HARRIS
Why social media is a force for good
Ten years ago, the idea of an accountant going viral would have sounded absurd. But today, accountants are using social media to educate, inspire and redefine what our profession looks like.
Platforms like Instagram, TikTok, and LinkedIn are breaking down barriers between accountants and the public. They allow us to show the human side of finance: translating jargon into plain English, sharing behind-the-scenes moments, and building trust with audiences who once found accounting intimidating.
For me, social media started as a way to connect with business owners who couldn’t afford an accountant. It’s now become a community of over 250,000 people as well as a hugely profitable business for me, united by a shared belief that finance doesn’t have to be boring.
But this shift isn’t just about visibility, it’s about impact. Accountants who embrace social media aren’t just promoting themselves; they’re shaping the future of the profession. They’re proving that credibility can come from clarity, not complexity, and that great communication is as important as technical skill.
So, if you’ve ever wondered whether social media is ‘for you’, consider this: the profession is evolving either way. The question is whether you want to be part of the conversation or watch it happen from the sidelines.
Fewer accountants needed
AI adoption within UK accountancy and bookkeeping practices is enhancing sector profitability, driving a major boost to the wider economy and reshaping hiring across the industry.
However, the new study from Xero, the Centre for Economic & Business Research (Cebr) and Censuswide shows accountancy practices are looking to hire more non-accounting professionals. Three-quarters (76%) of practices said the emergence of AI has influenced their practice’s hiring strategy, with 62% of these saying their practice is hiring more nonaccounting professionals.
In particular, the focus areas for new hires are now technical specialists (65%), advisory specialists (63%), those with strong communications and interpersonal
skills (63%) and creatives (61%).
The study found 98% of practices reported using AI in some way to complete day-to-day tasks, with around half (47%) using AI at least once a week for an average duration of two hours and 53 minutes a day.
Stuart Miller, Director, Public Policy & Technology Research at Xero (pictured), said: “AI is driving the greatest reorganisation of human capital in the history of accounting. It will help with the industry’s talent shortage, and it will amplify human potential within practices, elevating their services to higher level advisory.”
The costliest cyberattack in UK history
The cyberattack on Jaguar Land River (JLR) will cost the UK economy a whopping £1.9bn –the most economically damaging attack in UK history, according to the Cyber Monitoring Centre (CMC).
The car giant was forced to halt car production for five weeks, with an estimated 5,000 other businesses in the supply chain affected.
Ciaran Martin, chair of the CMC’s technical committee, said: “With a cost of nearly £2bn, this incident looks to have been by some distance the single-most financially damaging cyber event ever to hit
AI’s ethical threats
Artificial intelligence is no longer a future concern but a present reality, bringing with it ethical challenges that demand urgent action.
Marking the recent Global Ethics Day, ACCA and the Chartered Institute for Securities & Investment warn that without improved skills, stronger governance and aligned policies the profession risks losing the trust on which it is built.
The report, ‘AI Monitor: Shining a light on AI’s ethical threats for finance professionals’, identifies
four key findings:
• AI is already embedded across work and life, making its ethical implications unavoidable.
• AI poses specific risks for finance professionals, reinforcing
the UK. “That should make us all pause and think. Every organisation needs to identify the networks that matter to them, and how to protect them better, and then plan for how they’d cope if the network gets disrupted.”
the importance of applying fundamental principles.
• AI literacy is essential to combine technical understanding with ethical judgement.
• Alignment is needed across individuals, organisations and policymakers, as no single group can manage these challenges in isolation.
The report also sets out practical considerations for the profession, calling on individuals to strengthen their awareness of ethical dilemmas when using AI, supported by practical checklists to guide decisions.
MTD – it’s in the bank Sage has teamed up with digital bank Monzo to embed its MTD for Income Tax technology directly into the bank accounts of 700,000-plus business customers.
It means those who have Monzo bank accounts can file taxes directly to HMRC without leaving the Monzo app. The full launch of the new tool is expected in time for the new tax year, when MTD comes into effect.
“Managing taxes is one of the biggest headaches for sole
traders and landlords,” said Jordan Shwide, General Manager, Business Banking at Monzo.
“That’s why we’re making tax filing simple with a built-in tool, powered by Sage, that lets customers file directly to HMRC from their Monzo Business bank account.”
Cyber threats top risk agenda
Some 99% of UK finance leaders say they have experienced payment-related cyber incidents in the past two years, according to
research by corporate payments company Corpay.
The finance function is now a frontline target, so it hardly surprising that 42% of CFOs cite cybersecurity as their single biggest operational risk (the largest percentage of responses).
Automation is seen as a way of bolstering resilience and cutting inefficiency, but integration of legacy systems remains a headache for many.
Corpay’s Piero Macari said: “With 99% of surveyed CFOs reporting
some form of payments-related incident, and 94% indicating the importance of real-time visibility, it’s clear the status quo is unsustainable.”
Responsible AI works Businesses that adopt advanced responsible AI practices are reporting greater improvements in revenue growth, cost savings and employee satisfaction, according to findings from the latest ‘EY Responsible AI (RAI) Pulse survey’.
Rachel Harris is the founder of striveX and @accountant_she
Hot topics or hot air?
Whenever syllabuses change, students are eager to understand what’s new and where to focus their efforts. At these times talk of so-called ‘hot topics’ can dominate social media platforms, tutor marketing and student tuition choices.
But how far should tutors go in making such claims? Some tutors promote ‘hot topics’ that are “much more likely” to be examined. The problem? This advice is often highly speculative. Students who place their trust in such advice take a big risk if they skew their revision towards such areas.
So why do tutors make such public guesses? Worrying possible explanations include:
1. Unethical marketing:
attempts to recruit students by offering ‘exclusive insight’. This creates an impression that they are better informed and better connected than competitors.
2. An alternative to competence: if a tutor is not be well-informed about the syllabus
and exam, they may ‘tip’ topics they know more about.
3. Giving the customer what they want, true or not.
Students, often under enormous pressure, place significant trust in their tutors to guide their preparation effectively and ethically. With that comes tutor obligations: to stick to the facts, to base teaching on the published syllabus and examinable documents, and to avoid speculative and misleading marketing gimmicks. And whilst students love tips, they should always come with a health warning!
Students deserve clarity, honesty and professionalism from those they rely on for exam success. Hot topics should never become hot air.
Name and email address supplied
Our star letter writer wins a fantastic ‘I love PQ’ mug!
Where are new exam centres?
It came as a bit of a surprise to read about ACCA’s withdrawal of remotely invigilated exams. This is a big step backwards.
In truth, I have sat both remotely and at exam centres and have always preferred to go to a centre. Connectivity is not perfect where I live, which added to the stress of exam day. I also use the travel time to the exam centre to flip though my revision cards with a cup of coffee, and normally arrive at the centre more calm!
But I agree with what people are saying online. ACCA has missed a trick and could have softened the blow if at the same time it had unveiled a bigger and better network of exam centres. Name and address supplied
Why no remote exams?
I am so disappointed with the news that I can no longer sit my ACCA exams remotely. My nearest exam centre is a 180-mile drive away. That means hours sat in my car, and on these dark winter days I dread the journey.
ACCA says it is concerned about ongoing security of remote exams. Is it worried that these exams can be hacked? Surely there is the same risk to exams being sat at exam centres? Or have they found they can’t stop students cheating at home?
Don’t AAT, CIMA and ICAEW all
currently offer remote exams? If there were real technical issues with security then we can expect these bodies to follow suit. This is not the sort of service I expect from a progressive professional body. Come on ACCA, have a rethink!
Name and address supplied
Lucy Cohen (pictured) recently became the youngest-ever President of the AAT. Here’s what she said on LinkedIn immediately after being elected:
“Today I became the 45th President of AAT. Which means, yes, I share a presidential number with someone who’s currently very keen on tariffs. Whereas I prefer free trade – of ideas, opportunities and knowledge.
“I’ll be spending my term breaking down barriers, opening doors and building bridges where they’re needed most. Because that’s what this presidency is about. Making sure AAT continues to be a place where everyone belongs. Where your potential matters more than your postcode. Where talent, not background, opens doors. From apprenticeships to sparebedroom startups, from small businesses finding their feet to those fighting to make a difference – this is who we serve, and who I’ll champion every day.
“It still feels slightly surreal to say that the girl who started as an apprentice and built a business from her spare room is now the President of the organisation that helped make it all possible. But maybe that’s the point. That difference belongs here. That every route is valid. That you can be yourself and still take your place at the table – piercings, tattoos and all.
“So yes, I’m the 45th President. But this one’s building bridges, not golf courses. Here’s to inclusion. Here’s to small business.
“And here’s to proving, once again, that AAT accountants are for the real world.”
THE PQ AWARDS ARE HERE!
It’s time to get nominating for the PQ magazine Awards 2026
The PQ magazine awards are back for their 23rd year, and we need to find new winners for our coveted trophies.
It really is time to get nominating for what has become the biggest night in the accountancy education industry calendar, but you won’t be there if you don’t enter.
And, if your accountancy body isn’t a sponsor, then you really need to ask them why!
But you don’t have to believe us what a great night it is – check out our 2025 winners video here
Last year’s big winner on the night was Grace Hardy (pictured), who won both Personality of the Year and Podcast of the Year trophies.
Accountancy Body of the Year went to ICAS, and Net Zero Accountancy Initiative walked away with Innovation of the Year.
Online College of the Year was awarded to Premier Training, and Chesterfield College’s Fay
Hill won the Public Sector Lecturer of the Year to add to her AAT Training Provider award.
Last year PQ magazine created the PQ Hall of Fame, and the first person to be inducted was HTFT’s Clare Finch. But who will be this year’s winner?
So, how do you get your hand on a PQ? Well, pick a category and make your case to be shortlisted in no more than 500 words. If you feel you need to add supporting material then please provide this separately, but your entry will be primarily judged on those 500 words.
To download the application form simply click here
Once you have your entry sorted send it off to us at awards2026@pqmagazine.com. And that is it, it is that simple.
However, as we say every year, our awards are about quality not quantity, so the total number of nominations per person/institution will not
ensure a shortlisting.
Remember, if you make it onto that shortlist you get to come to the awards night (for free) in London next April.
So, don’t miss out on a unique night in the accountancy calendar!
Deadline for entries is Friday 6 March 2026.
THE 2026
AWARD CATEGORIES
PQ OF THE YEAR
NQ OF THE YEAR
DISTANCE LEARNING STUDENT OF THE YEAR
ACCOUNTANCY GRADUATE OF THE YEAR
ACCOUNTANCY APPRENTICE OF THE YEAR
STUDENT BODY OF THE YEAR
STUDENT CHAMPION OF THE YEAR* (NEW*)
ACCOUNTANCY BODY OF THE YEAR
ACCOUNTANCY COLLEGE OF THE YEAR –PUBLIC SECTOR
ACCOUNTANCY COLLEGE OF THE YEAR –PRIVATE SECTOR
ONLINE COLLEGE OF THE YEAR
LECTURER OF THE YEAR – PUBLIC SECTOR
LECTURER OF THE YEAR – PRIVATE SECTOR
STUDY RESOURCE OF THE YEAR
ACCOUNTANCY PODCAST OF THE YEAR
INNOVATION IN ACCOUNTANCY
BEST USE OF SOCIAL MEDIA
TRAINING MANAGER/MENTOR OF THE YEAR
GRADUATE/APPRENTICESHIP TRAINING PROGRAMME OF THE YEAR
ACCOUNTANCY TEAM OF THE YEAR
ACCOUNTANCY PERSONALITY OF THE YEAR
OUR SPONSORS
OUR PQs OF THE YEAR…
Sunny currently works as a corporate taxation consultant at EY, advising private companies on transactions, M&A and expansions on global deals. He also volunteers as an adviser for TaxAid, helping individuals who cannot afford professional advice claim thousands of pounds back from the revenue.
Sunny became the first Chinese and youngest chair of the Chartered Accountants Student Society of London (CASSL) in its over 200-year history. He also opened CASSL events to welcome students from all professional bodies, creating an inclusive platform to learn and network.
Grazia’s nominator said that in almost 30 years of preparing students for accounting exams he had not met another like her. Here is a student who quite happily takes over as tutor and presents exam answers on the screen while her tutor takes the student seat. They said: “If we could design the perfect student, we’d just clone Grazia. Whether we could survive having more than one of her in class, well that is another story.”
Grazia comes from an Italian farming family and has grown up respecting the climate, and she plans to eventually pursue a career in ESG.
Having passed her AAT qualification Evie then moved onto her ACCA studies. What makes her stand out is her underlying desire to give something back. She is constantly trying to help other students; with her friend Callum she launched Only2Nerds, an Instagram study group that shares tips about their experiences. This account has huge appeal to students as it is a real-life take on what it is like studying while working and trying to have some aspects of a normal life as a young person.
Evie also became a film star for ACCA and appeared on numerous podcasts.
2025 Sunny Yang
2024 Grazia Maria Pia Salcuni
2023 Evie Todd
Attaining educational excellence
Jennifer Rose explains how becoming a PQ award winner helped her develop her career and expand her horizons
When I received the PQ Lecturer of the Year award in 2023 it felt like wonderful recognition of the passion I bring to teaching accounting and finance.
Now, as I reflect on being awarded a National Teaching Fellowship and Principal Fellowship of the Higher Education Academy in the past few months, I’m struck by how that initial recognition helped shape a journey that has led to these national honours.
Building on PQ win
My connection with PQ awards began in 2022 when I nominated our Accounting Society for a PQ award, which they won. This was strengthened when Tim Mickleburgh, one of our outstanding graduates, won the PQ Accounting Graduate Award in 2024. Tim’s journey perfectly exemplified what accounting education is all about – watching him grow in confidence, seize every opportunity the University of Manchester had to offer, and transform from student to emerging professional was truly inspiring.
The PQ Lecturer of the Year award confirmed that my innovative approach was truly making a difference to students, giving me confidence to push boundaries even further, which I will always be grateful for.
The innovation
My development of ‘active self-feedback’ helps students learn independently and develop intellectually. Central to this approach is encouraging students’ intellectual development, moving them from asking “what do I need to learn for the exam?” to evaluating different viewpoints within contexts. This is crucial for accounting students who must cope with inherent uncertainties in real-world business situations.
Equally important has been my work embedding sustainability into accounting education. As a co-founder of the Accounting Streams project (www.accounting-streams.org) I’ve helped reimagine accounting education for contemporary society, growing versatile decision-makers who value accountability and sustainable development.
By setting open-ended problems with ambiguous answers – like those encountered in professional practice – students develop
resilience to cope with uncertainty and selfawareness to understand different contexts. This prepares accounting students for a profession where answers are rarely clear-cut.
Gaining recognition
The National Teaching Fellowship represents recognition at the highest level of UK teaching excellence. My Principal Fellowship of the HEA acknowledges sustained strategic leadership in higher education, particularly my work embedding sustainability into accounting teaching.
These awards celebrate the courage to reimagine education when students’ long-term growth and preparation for a sustainable future become the cornerstone of pedagogical practice and are built on the work I was recognised for back in 2023 with the PQ award.
Beyond the classroom
When teachers encourage students to develop genuine intellectual curiosity and evaluate multiple perspectives, this helps to prepare students for workplace realities. Employers
consistently report that graduates lack resilience, time management and self-awareness –precisely the skills that develop when students learn to cope with uncertainty and think contextually about complex problems.
Students now must learn much more than accounting principles; they need to learn to question, analyse and adapt. Crucially, they develop understanding of sustainability and ethical decision-making essential for ESG reporting and sustainable business practices. Most importantly, they develop intellectual resilience to handle the ambiguity that characterises real accounting work.
Looking forward
This national recognition, which built on my PQ Lecturer of the Year award, validates the importance of challenging learners to navigate uncertainty while offering comprehensive views of organisations, ethics and sustainability alongside technical content. The skills that matter most – critical thinking, adaptability, ethical reasoning, sustainability awareness and independent learning – are exactly what approaches like self-feedback and sustainabilityembedded curricula develop.
For current students, embrace the learning process, not just outcomes. Learn to be comfortable with uncertainty and ambiguity –constant companions in professional accounting work. Develop intellectual resilience to evaluate multiple viewpoints and make context-based judgments rather than seeking single ‘correct’ answers. Train yourself to write feedback for yourself, as described here, and use GenAI as a Socratic partner to sharpen your thinking.
The journey from PQ recognition to National Teaching Fellowship has reinforced my belief that when we place students’ long-term growth at the centre of everything we do, remarkable things happen. Education becomes not just about passing exams but about transforming lives and shaping the future of our profession – one that must be ready for sustainability challenges, ethical decision-making, and the courage to navigate uncertainty with confidence.
• Jennifer Rose is a Senior Lecturer in Accounting and Finance and Director of Employability for the Alliance Manchester Business School at the University of Manchester
Editor’s note: the latest article from Tim Mickleburgh is on page 22
How to score zero
Martin Jones explains how sitters should tackle the SBR exam –just answer the requirement
It is easy to score zero in any exam. We can give it a go in ACCA Strategic Business Reporting and see what we can learn. Let us look at the hot topic of sustainability reporting. Here is an illustrative question based loosely upon the example in the excellent ACCA SBR Technical Article on IFRS Sustainability Disclosure Standards:
Requirement
Critically assess the usefulness to investors of Gemma’s disclosure on sustainability. Your answer should outline any areas of noncompliance with IFRS Sustainability Disclosure Standards. (5 marks)
Exhibit
Gemma discloses the following in management commentary regarding sustainability. This is the entire sustainability disclosure:
“There is a risk of the sea rising. The company is considering moving some warehouses.
“There is risk of global temperature rising. There is a programme to look into alternative materials.”
Semantics
So now we shall look at the words in the requirement and understand what the examiner is asking:
Assess
This means weigh up with a list of good things and bad things.
Critically assess
In SBR, this means a lot more bad things in your list than good.
Investors
Take the viewpoint of an investor. Think how an investor would relate to the disclosure.
Usefulness
This means the examiner wants you to say what is helpful and what is not helpful to investors. 5 marks
This means make 5 points, perhaps 1 positive and 4 negatives.
Disclosure
Assess the disclosure. Assess the sustainability reporting. Assess the exhibit.
Non-compliance with IFRS Sustainability
Disclosure Standards
Identify the elements that do not follow IFRS. Outline
Briefly touch on these compliance failures.
Suggested answer
Something like this:
“This short list of risks is helpful because this gives investors a flavour of some sustainability problems facing Gemma.
But the list is so vague that it does not explain how temperatures and rising seas effect warehouses and raw materials. The standards require clarity and usefulness. This has neither.
The disclosure needs to tell investors where the warehouses are, why they are at risk and where the company is considering moving to.
The disclosure needs to tell investors what is wrong with the current materials and what alternatives are being considered.
The disclosure needs to identify costs: costs of moving and costs of alternative materials.”
And there are an enormous number of
other points that could be made criticising the sustainability disclosure. However, the above would be sufficient to score full marks.
Zero
Now let us look at a number of illustrative answers that score zero.
Sustainability
There is always a risk in Strategic Business Reporting that students might write about strategy rather than reporting. For example, a weaker student when presented with an exhibit that describes a factory closure might discuss the labour negotiations rather than the provision. But the risk of taking the wrong turn in sustainability reporting is even higher. Here is an illustrative answer that takes that wrong turn:
“Gemma should build sea defences for the warehouses.
Gemma should monitor sea levels.
Gemma should look into ecofriendly materials. Gemma should consider alternative suppliers. Gemma should monitor greenhouse gas emissions.”
This looks good at first. But on re-reading the requirement you realise that this answer is advising on the sustainability strategy and not the sustainability reporting. Here is the critical component of the requirement again: “Critically assess Gemma’s disclosure” – and that is the key. Re-read the requirement before you commit fingers to keyboard and re-read the requirement again in the middle of your answer.
Company
There is a risk that students might talk about how the disclosure can improve matters for the benefit of the company. The requirement references ‘usefulness to investors’. There is a risk of a viewpoint error. For example, the unwary student might talk about how the disclosure pushes up the brand value to the advantage of the company, instead of how the disclosure is useful for the investor’s understanding.
IFRS
There is a risk that students dump everything they know about the sustainability standards; and then completely ignore the exhibit. For example, a knowledge dump answer might reference the GHG Protocol or Scope 1/2/3 without referencing this to Gemma. This will generally score zero. The requirement referred to “Gemma’s disclosure” and almost all SBR requirements are scenario specific.
Criticisms
And, lastly, there is a risk that students produce a list of only positives regarding the disclosure, with no negatives at all. For example, an overly positive answer might celebrate that the disclosure enables the investor to understand the company response to rising sea levels, when the disclosure does not do that. The disclosure only flags the risk and mentions warehouses. In SBR, the requirement phrase “critically assess” does essentially mean produce a list of negatives. So there you go. It is easy to score zero. It turns out that there are a number of traps that can capture the unwary. But it also possible to score very high marks with concise answers. All you have to do is answer the requirement.
• Martin Jones is an ACCA SBR expert and current PQ award winner
Irregularities of Internal Rate of Return
CIPFA’s Anna Howard takes a look at how Internal Rate of Return might be examined in the exams
It is probable that Internal Rate of Return (IRR) will be assessed in the CIPFA Business Planning and Financial Management paper. After all, it may appear as an investment appraisal question, but is more likely to appear as part of a cost of capital calculation.
Many students spend the necessary time and effort to excel in this area, but some students find that because of the initial difficulties in learning IRR they decide to rely on a strategy of picking up enough marks elsewhere in the paper. This strategy is a dangerous one and will likely result in failing the exam. So what can be done if you are one of those students who struggle with IRR? Let’s consider some understanding that may help and some techniques to ensure you are able to attempt these questions in the exam.
What is IRR?
IRR is the percentage return of a particular project or investment. It is therefore the discount rate used in a net present value calculation that results in a zero NPV. In practice this can be accurately calculated using certain specific formulae. In the BPFM exam, however, students will be asked to calculate IRR using an interpolation formula that will be provided.
What is interpolation?
Interpolation is estimating outcomes between data results. For example, the average height of a newborn girl in the UK is 50 cm and at 10 years old is 138 cm. Using this data, we can estimate the height of any age between 0 and 10 using interpolation. If we take the difference of height and divide by the number of years, we can calculate the average increase in height per year. In this example it is (138 – 50)/10 = 8.8 cm increase per year. Now use this calculation to estimate the height of a seven year old by using the height of a newborn plus seven years of average increase. That equals to 50 + (7 x 8.8) = 111.6 cm.
Using the interpolation formula
The aim of the IRR formula is to estimate what discount factor will produce a NPV of 0. Taking the example earlier, to estimate the average height of a four-year old girl we would need two data results either side of four. As the data is at 0 years and ten years, interpolation can be used. Interpolation could not be used to estimate the height of a 15 year old because this is outside our data results and we would therefore have to use the less reliable extrapolation process. Using this reasoning, in order to estimate the discount factor that produces a zero NPV, then data results are required that produce a negative NPV and a positive NPV. It is also important to establish a NPV calculation by interpreting the information given in a question. Students find this particularly challenging when dealing with redeemable debt whilst given the variety of information in the scenario. It may be beneficial therefore to learn the following table:
0 Current market priceUsually given but may be percentage of nominal value
Number of years Net interest expenseNominal
(1 – tax rate)
Example of an IRR question
Let’s put all this theory into practice. ABC PLC has a £600 million redeemable debenture. Its fixed coupon (interest) rate is 8%. The debenture is trading at 110% of its nominal value and will be redeemed at par in five years from today. ABC PLC pays tax on its profits at a rate of 25%.
First, we need to identify from the information what the various elements in the scenario.
• Nominal
•
•
Now let’s produce the cashflow using the table
We need to do now produce at least two NPV calculations; one positive and one negative. Unless specific discount rates are given in the question, the interest rate itself is a good starting point. So let’s discount the cashflow using 8%.
As we now have a negative NPV, we need a positive one. In order to get a positive NPV a lower discount rate is needed. A 5% gap is a good start and so we will now use 3%.
As 3% gives a NPV of £22.68m and 8% gives a NPV of (£107.65m) then we know that a zero NPV will lie between the two. We also can expect the outcome to be nearer 3% because that NPV is nearer zero than 8%. At this point, we should be expecting an IRR around 4%. Let’s now put these figures into the formula.
3 + ((22.68/(22.68 + 107.65)) x (8-3)) = 3.87
Irregularities of IRR
When working through examples like this it may appear quite certain how things work out, but in reality this is not the case. It’s because the assumption with the interpolation formula is that data changes uniformly. Whilst we used this method to estimate the height of a seven-year-old girl as being 111.6 cm, the actual average height is 120 cm because children do not grow uniformly between 0 and 10. The same is true with IRR and NPV. By using varying discount rates a student will get slightly different results and this can lead to uncertainty. However, for the BPFM, markers will be looking to see if students are following a process rather than focusing on the final answer. Instead, practice the questions and make sure the marker sees how you are completing the process and don’t focus on the final outcome.
• Anna Howard is head of qualifications, innovation and development at CIPFA
Letting in the light
In the final instalment of his three-part series, Tim Mickleburgh (pictured) asks whether it is time to mandate socio-economic background reporting
In last month’s PQ magazine I discussed the barriers to entry and progression faced by finance professionals from workingclass backgrounds. But could mandatory socio-economic background reporting prompt employers to take action to boost working-class representation in their workplaces?
The UK government’s draft Equality (Race and Disability) Bill is anticipated to mandate ethnicity and disability pay gap reporting by large employers in the near future, mirroring the gender pay gap reporting obligation that has been in force since 2017.
I believe that it is also time for the UK government to introduce a socio-economic pay gap reporting obligation. Large employers should be required to publish their socio-economic pay gaps on an annual basis, to set pay gap targets, and to link executive pay to performance against targets.
In addition to this, I believe that large employers should be required by law to annually report on the proportion of roles filled by employees from lower, middle or higher socio-
economic backgrounds, across all levels of seniority, and to set targets for the level of lower socio-economic representation.
The most reliable indicators of socio-economic background that could be used include parental occupation at age 14, type of school attended at age 11 to 16, free school meal eligibility, and highest parental qualification.
Mandatory socio-economic background reporting is achievable. There are a number of large UK employers – including 60 in financial
services who represent one-third of the sector’s workforce – who are already voluntarily collecting and publishing their socio-economic background data. For example, KPMG and PwC both started back in 2021.
The success of reporting, of course, depends on the willingness of employees to disclose their socio-economic background. Although employers already collecting socio-economic data have seen high participation rates – 70% at KPMG and 80% at PwC, for example.
Low participation rates could undermine the quality of reporting. It’s crucial that employees are educated on the importance of high participation rates in giving a more complete picture that enables disparities in representation and earnings to be properly identified and understood.
In addition to this, employers must keep their employees informed about the actions being taken to boost working-class representation in their respective workplaces, so that employees are assured that sharing their socio-economic data is making a difference.
So, there is a lack of working-class representation in the finance profession; there are barriers to entry and progression inhibiting the success of professionals from working-class backgrounds; and there is a pressing need for mandatory socio-economic background reporting to prompt employers to take action.
That brings us to the end of my three-part series. Until further notice…
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Your partner for exam success
Using the ACCA Study Hub will increase your chances of getting qualified – and the association has the numbers to prove it…
The ACCA Study Hub is an essential part of your ACCA journey, helping thousands of students around the world prepare effectively for their exams.
Packed with high-quality, ACCA-approved content that covers the full syllabus, the Study Hub gives you everything you need in one place: detailed study text chapters; endof-chapter quizzes; flashcards to test your knowledge; additional practice questions; and embedded Topic Explainer videos to help you understand any trickier areas.
This free and accessible resource means that all ACCA students can access top-quality study materials. It contains comprehensive learning content to help students study smarter and succeed in their exams.
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content is regularly updated to reflect the latest industry developments and exam requirements, ensuring everything you study remains relevant and accurate. This makes the ACCA Study Hub a vital resource for any ACCA student.
Students who use the ACCA Study Hub consistently achieve higher pass rates compared with those who don’t. In the September 2025 exam session, where just over 50% of exam takers used the Study Hub, pass rates for those users were nearly 10% higher when compared with those who hadn’t.
Boost your learning
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Becoming a qualified ACCA professional requires discipline, structure and access to trusted study resources. With business and finance growing more complex, students need tools that not only explain the syllabus but also help apply knowledge in scenario-based practice questions. The ACCA Study Hub does exactly that – combining official content, interactivity and flexibility to give students the best chance of success.
Because it’s developed by ACCA, all content is accurate and aligned with the latest syllabus. You can be confident you’re studying the right material – no guesswork, no outdated notes.
Access the Hub
1. Log in to your myACCA account.
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Take a look at our top tips videos to get the most out of the ACCA Study Hub.
• Thanks to ACCA for this article
Why do you put yourself through it?
Nasheen Wuisman has some advice for a student who is struggling to balance work and study and is on the point of quitting
It’s completely normal to feel overwhelmed when trying to juggle work and study – many CGMA candidates experience moments of doubt and wonder whether they’ve made the right decision. The prospect of being CGMA qualified may feel like a big but distant dream, and the journey itself is often intense and challenging. But you chose this path for a reason, and that reason still matters.
Why put yourself through it? Well, because it gives you purpose. It gives you goals to work towards – goals that bring you fulfilment, build self-esteem and confidence, and open doors to new opportunities, giving you career prospects you never had imagined. It allows you to dream bigger – and that’s worth working hard for.
Everyone faces the challenge of finding the right balance – between life, work, family, hobbies and now study. What matters is how you manage that balance and look after your emotional health. Your emotions can impact
the way you learn and how efficient your study time is. Motivation dips and procrastination are normal, but they don’t have to derail you.
Declutter your thoughts
When studying for an exam, the scale of the task can end up clouding your thoughts. It can start to feel insurmountable – an understandable emotional response.
Being too focused on the end goal is what’s overwhelming, and it becomes hard to see your progress. Break your big goal down into smaller,
manageable sub-goals. Set yourself frequent, shorter study sessions. Ones which are more realistic to fit into your busy lives. Witnessing how far you’ve come, more often, will give you the much-needed motivation to keep going.
And make sure your plan includes some downtime. Rest isn’t a break from progress – it’s part of it.
Coping with negative emotions
It’s common to come up against a topic you really struggle with. These difficult topics can often trigger negative emotions. Suddenly, you find yourself thinking “I don’t get it” and “I’ll never be able to get it”. This can put you off persevering and disrupt your progress.
But these emotional barriers are normal – and you’ve dealt with them before. Remind yourself of the times that you struggled, the difficult topics you’ve come across and eventually mastered, or at least made sense of. You’ve done it before, and you’ll keep doing it until you are CGMA qualified and beyond.
Remember, every piece you study takes you one step closer to exam success. A single step may feel small, but it doesn’t mean it’s insignificant. Believe in yourself – you’ve got this!
• Nasheen Wuisman, Senior Manager of Global Academic Progression at AICPA & CIMA, together as the Association of International Certified Professional Accountants
Time to stand up and lead
IFAC’s Young Leaders Collective has outlined the four key actions needed to help young professionals drive sustainability reporting
The global challenges of climate change, resource scarcity, and social inequities demand urgent and inclusive action.
As enablers of corporate decision-making and accountability, accountants are uniquely positioned to bridge the gap between sustainability risks and opportunities and business outcomes.
The recent issuance of international standards for sustainability reporting and assurance and related updates to the International Code of Ethics for Professional Accountants set the stage for accountants to embed sustainability-related financial disclosures at the centre of investor and stakeholder decisionmaking.
The IFAC Young Leaders Collective calls on colleagues, and members of its generation of accountancy professionals, to stand up and lead the implementation of these standards in the
organisations they serve.
Here is a roadmap to position yourself at the centre of this global movement:
Ignite your curiosity and hone your skills
• Build knowledge and skills: Learn through courses, workshops and informal learning, and seek practical experience.
• Get certified: Obtain formal, sustainability-related certifications to build competence and expertise.
Stay current: Read sustainability reports, follow key updates from regulators and standards-setting bodies and analyse industry trends.
Engage, connect and collaborate
• Engage with peers and society on key sustainability issues through forums, events and
publications
• Connect with industry leaders through networking events, find mentorship opportunities and build a strong community of changemakers.
• Collaborate on initiatives and challenges with sustainability professionals and experts.
Promote the importance of sustainability reporting
• Share content highlighting the significance of implementing sustainable initiatives through online platforms and other mediums.
• Showcase sustainability reporting success stories, case studies and best practices from different sectors and industries.
• Interact with businesses through key forums to discuss and encourage their sustainability goals and strategic plans.
Adopt a tech-driven mindset
• Prioritise technology-driven solutions such as AI and data analytics in approaching sustainability reporting.
• Commit to lifelong learning to stay ahead of the latest technological advancements.
• Promote innovative solutions with your professional community to accelerate sustainability reporting efforts.
For more click here
Is the tax man spying on you?
Neil Da Costa explains how HMRC is using AI to help it track those who evade tax. Could that be you?
The recent surge in artificial intelligence capability has led to HMRC becoming increasingly sophisticated in investigating tax dodgers. Here we will explore 10 red flags HMRC look for when investigating possible tax evasion.
Red flag 1
Most people love posting their holiday photos on social media. Through their Connect software, which is now 15 years old, HMRC is able to analyze your Instagram and compare that to your reported income. So, if you love imitating the influencers and your holiday photos show you on a yacht in the Caribbean, flying business class to Dubai or relaxing in a luxury villa in Santorini, this immediately casts doubt on your actual income reported.
Red flag 2
The taxman is now able to analyze listings and rental placements on Rightmove, Zoopla and Airbnb and compare that to information from the Land Registry. They can then check if the rental income from that specific property has been disclosed in your tax return. If not, expect an imminent tax enquiry.
Red flag 3
Since June 2021, the taxman has the power to issue a Financial Institution Notice that requires an individual to provide information on bank accounts and investments. If they find large unexplained cash deposits in your bank
accounts this creates a red flag.
Red flag 4
The recent introduction of VAT on private school fees has led to the average day student annual cost spiraling to £20,000 per child. Many families might have more than one child in private education so HMRC has been known to scour school registrations to check if the disclosed family income corresponds to the school fees paid. So, if your children go to private school this raises an immediate red flag with the tax man.
Red flag 5
Many people who have an online side hustle on Etsy, eBay, Gumtree or Vinted may not realize that, since January 2024, digital platforms are obligated to disclose details of sellers with earnings of at least £1,700 or those with 30 transactions in a tax year. If you are reported to be carrying out these online sales it immediately raises a red flag that you are carrying out a trading activity, leading to a potential income tax liability.
Red flag 6
HMRC uses AI to analyse dividend payments as well as stock and crypto transactions to determine if this correlates to income and capital gains disclosed in the tax returns. So, if you have been trading on Freetrade, Trading 212 or eToro this raises a red flag in relation to your tax affairs.
Red flag 7
In 2014, almost all members of the Organization Of Economic Cooperation and Development (OECD) entered into the Common Reporting Standard (CRS) to share financial information. This includes countries such as South Africa, India, China and the UK. Many people are unaware that tax havens such as Panama, Cayman Islands or the United Arab Emirates are all part of the CRS. If you have stashed away a slush fund in Brazil to tide you over in the event of a future divorce then HMRC may know all about it.
Red flag 8
The taxman is now using digital tools such as Google Street View to check for expensive cars or major renovations, which may indicate undisclosed funds which have not been taxed. If you have a brand new Range Rover parked in your drive or have converted your three-bed semi into a five-bedroomed mansion you can expect the tax man to come knocking on your door.
Red flag 9
HMRC carefully analyses data leaks such as the well-known Panama Papers to launch investigations in possible tax evasion. In 2010, a disgruntled former employee of HSBC revealed that more than 8,000 UK residents had bank accounts in Switzerland. The taxman was able to raise more than £100 million in unpaid tax. So, if like James Bond you have a secret deposit box in Monte Carlo and an employee becomes a whistleblower, you could be facing steep penalties for non-disclosure.
Red flag 10
The tax authority pays fees to informants who report tax cheats and encourages customers to report tradespeople who offer a discount for cash payment so they can keep the transaction off their books. HMRC has revealed that they have paid out £850,000 in 2024/25 to snitches. They now plan to move to a US Internal Revenue Service System which offers a percentage of up to 30% of the tax collected to the informant. So, if you have requested a cash payment for your services this raises a potential red flag and invites scrutiny.
This approach, which treats everyone as a suspect by default, has been criticized as a breach of an individual’s right to privacy.
However, with the UK government facing a black hole in their finances of at least £20 billion it seems likely that the taxman will continue snooping and analyzing data from multiple sources to build digital profiles of taxpayers.
• Neil Da Costa is a tax lecturer, author, tax consultant and podcaster
If you are planning on doing Advanced Tax in the future, I recommend you purchase Advanced Tax Condensed, which will allow you to learn the technical rules If you practice the key questions I recommend, then you too will be ready for anything the examiner throws at you. This book will really make the difference. You can purchase it using the link here: https://lnkd.in/dPE6vaV
Crucial business skills at your fingertips
Certification to future-proof small practices
In an accountancy landscape where large professional bodies often best serve corporate interests, the Certified Public Accountants Association (CPAA) stands apart. The organisation is uniquely focused on micro accountancy practices and the practitioners who run them.
As a relatively new and forward-looking professional body, CPAA was built specifically for the realities of modern small practice accountancy. It recognises that small practices face distinct challenges and need more than theoretical qualifications; they need practical expertise, regulatory confidence and a supportive community that truly understands their world.
A qualification with a difference
The CPAA Level 5 Professional Certification in Public Practice Accountancy addresses a critical gap in professional qualifications. Where others offer broad accounting knowledge, this certification is laser-focused on what small practice accountants need: advanced taxation, compliance frameworks, financial reporting for SME clients, and ethical considerations specific to practice ownership.
It has a practical approach to career development; students can work while studying, and CPAA actively supports candidates already running their own practices. Practitioners can build their business whilst building their credentials, with no career interruptions, no
restrictions on client work, and no need to choose between earning and learning.
This flexibility matters enormously for those who have built careers through experience but lack formal recognition, or those establishing practices who need credibility alongside capability. The certification validates what practitioners know whilst filling knowledge gaps.
Flexible learning
CPAA Learn provides extensive resources including pre-recorded lectures and comprehensive study materials that work around client commitments. Live lectures cover topics in detail, and revision sessions consolidate learning whilst providing opportunities to engage with subject matter experts and fellow candidates.
Assessment spans three critical domains: Financial Reporting and Analysis, Advanced Taxation for Accountancy Practitioners, and Advanced Compliance and Ethics for Accountancy Practitioners, ensuring graduates possess well-rounded expertise they can apply immediately.
The assessment format combines theoretical knowledge with practical application. Candidates complete a self-reflective piece examining their professional experiences, demonstrating how they apply learning in real-world scenarios, complemented by a remotely invigilated closedbook exam.
Ongoing professional support
Graduates receive tangible recognition: a digital badge, physical certificate, challenge coin, and additional CPAA materials. These credentials provide immediate professional credibility and genuine marketing advantages when competing for clients.
Achieving certification is just the beginning. Graduates join the CPAA’s professional community of over 1,000 accounting professionals, gaining access to high-quality technical insights through the association's comprehensive programme that delivers over 20 hours of structured CPD annually through resources, expert-led webinars, and a regional seminar programme.
As the profession addresses talent shortages and changing client demands, this certification represents strategic investment in career development and small practice health. Strong uptake proves this qualification resonates –because it was designed by practitioners, for practitioners.
• The CPAA is a leading member association for accountants in public practice in the UK and overseas. Find out more at www.cpaa.co.uk
YOUR DECEMBER ACCA EXAM TIPS
The last ACCA exams of 2025 are nearly here. With the help of our friends at BPP, we compiled some tips for the Applied Skills papers. Go online to www.pqmagazine.com for all the Strategic paper tips
Performance Management (PM)
Section A will have 15 two-mark OTQs on a wide range of topics. Expect a mix of calculation and discussion-based questions, but note that there are no marks for workings in this section. Good time management is essential as it is easy to get caught up in a tough calculation, which ultimately will only be worth two marks. Never be tempted to spend more than five minutes on any question in this section.
Recent examiner feedback stresses that careless mistakes are common in Section A. Always re-check whether the question asks for cost per unit, total cost or a variance figure, as incorrect interpretation of the requirement is a frequent reason for losing easy marks.
For section B there are three separate scenarios with five objective test questions on each scenario; each question is worth two marks. Questions are not related and can be answered in any order. Each scenario could be a mix of topic areas or focused on one topic and will usually consist of two/three calculations and two/three narratives.
The examining team have highlighted that weaker candidates often lift words from the scenario without applying their knowledge. Stronger answers demonstrate why the information in the scenario is relevant and link it to the theory or calculation.
In section C there are two 20-mark questions,
which could be from but not limited to: budgetary systems, planning and operational variances, mix and yield variances, and evaluation of the company performance (either as a whole basis, or on a divisional basis).
Familiarity with the CBE software is important as you may be expected to use both a word processing and spreadsheet format for your answer. Learn standardised layouts for calculations such as variances, learning curves and limiting factors. This will save you time in the exam and mean that you are less likely to make mistakes.
Professional skills are increasingly expected even at PM level: good structure, clarity of communication, and logical argument will all help you secure higher marks.
Time management is another common weakness. Stronger candidates allocate their time proportionately (e.g. 36 minutes for each 20-mark question) and ensure they attempt all requirements rather than leaving parts blank.
The split of marks tends to be about 40% calculations and 60% discussion, so don’t neglect the written elements of this paper. Make sure that you always fully explain your ideas, too. Interpretation and application are important skills that are tested in this paper, so make sure you make full use of the scenarios that you are given in the exam.
Examiners have commented that many candidates can perform the calculations but then fail to discuss their meaning. To score well you must explain what the figures imply for management and link back to the organisation’s objectives or performance.
Audit & Assurance (AA)
In section A there will be three mini-case style scenarios, each with five two-mark questions based on the scenario (total 30 marks). Each mini-case question will test single topic areas of the syllabus and so will test syllabus areas A, B, C, D or E. Expect questions in section A to focus on areas A and E.
All three questions (one 30-mark and two 20-mark questions) in section B will be broken down into sub requirements and be scenario based. Most marks in each question will test syllabus areas B, C and/or D.
Areas expected to be tested in questions 16 to 18 include:
• Audit planning.
• Audit risk (identification and explanation of audit risks from a scenario and explanation of the auditor’s response to each risk).
• Internal audit.
• Internal controls (identification and explanation of deficiencies in internal control and Continued on page 30
the recommendation of suitable internal controls, and identification and explanation of direct controls and description of test of control).
• Corporate governance (identification and explanation of corporate governance deficiencies and recommendations to address the deficiencies).
• Audit procedures (substantive procedures and tests of controls).
General advice: Where questions are based on a scenario it is essential that you use the information in the scenario to score the identification marks and then develop this to score the explanation marks.
The exam often provides a table for you to complete your answer. For example, audit risk questions will have a table with two columns, one for ‘audit risk’ and one for ‘auditor’s response’ with each properly explained point being worth one mark. Using this tabular approach encourages you to answer both parts of the question, therefore maximising your marks.
Pay attention to the verbs used in question requirements as these indicate the number of marks available. For example, the verb ‘explain’ requires a sentence and will score one mark if properly explained, whereas the verb ‘list’ simply requires you to list out information with no further explanation, and this will score 0.5 mark per point.
Finally, it is essential you read the Examiner’s Reports, which are issued after the June and December exam sittings. These are an invaluable source of advice and provide a sample section A OTQ case-style question, as well as three constructed response questions from the March/ June and September/December sittings. Not only do they provide the example questions, but these are accompanied by a commentary from the examining team, which gives guidance on interpreting the question requirements and common mistakes/areas of weakness noted during the marking process. These reports can be found on the ACCA website.
Financial Management (FM)
Section A: Fifteen objective test questions (OTQ) worth two marks each. Questions often test your knowledge of key technical terms and will balance out the questions in Section B and C of the exam to make sure that all aspects of the syllabus are examined; so, questions will often test your understanding of financial management and objectives (including ratio analysis) as well as the economic and financial environment (financial markets, fiscal and monetary policies).
Section B: Three 10-mark mini case-studies
each containing five OTQ questions. Commonly examined areas are working capital management (e.g. the operating cycle, the impact of a change in credit period or accepting a factor’s offer), business or security valuations, and risk management (currency and interest rate risk).
Section C: Two 20-mark questions. Questions will be broken down into discussion and numerical requirements based on a common scenario; marks will be split evenly between calculations and discussion.
These questions will focus mainly on syllabus sections C (working capital), D (investment appraisal) and E (business finance). Whichever of these three topics does not feature in section C is more likely to be tested in section B of the exam.
Questions from syllabus section C are likely to be broad-ranging, so a good broad knowledge of this syllabus area is important. Candidates are sometimes caught out by section C questions in this area, so make sure you practise this type of question as part of your final revision.
Questions from syllabus section D are likely to feature NPV with inflation and tax; however, it is important to also be able to answer questions that include risk, uncertainty, leasing, asset replacement and capital rationing.
Questions from syllabus section E often test the calculation and analysis of a company’s cost of capital. Candidates often assume that business finance questions will always test this area, but questions also frequently test the evaluation of financing options (debt or equity), which sometimes catches candidates out. So make sure you practise this type of question as part of your final revision.
Financial Reporting (FR)
Section A: Fifteen two-mark objective test questions on a wide range of topics, including areas such as consolidation and interpretation of
financial statements that will also be covered in detail in Section C.
Expect a question or two on non-core areas (e.g. sustainability following the issue of IFRS S1). Read the scenario, requirement and answer options carefully and ensure you capture the correct information from the scenario to answer the requirement.
Don’t leave any questions unanswered – there is no negative marking so guess if you are unsure of the correct answer.
Section B: Three separate case-study scenarios with five objective test questions on each scenario; each question is worth two marks. Each scenario could be a mix of topic areas (for example, revenue and receivables are often related, as are property, plant and equipment and leases) or focused on one topic and will usually consist of two/three calculations and two/ three narratives.
Questions are not linked and can be answered in any order.
Don’t leave any questions unanswered –again, guess if you are unsure of the correct answer.
Section C: Two 20-mark constructed response (long-form) questions, one covering the interpretation of financial statements, and the other the preparation of financial statements.
One question will be in the context of a single company and the other will be in the context of a group, so you could be faced with a single company interpretation question and a group accounts preparation question, or vice versa.
Both questions will require knowledge from other areas of the syllabus, particularly the accounts preparation question, which will have a range of adjustments covering various areas.
Accounts preparation questions may require full financial statements or extracts – read the requirement carefully. Candidates commonly
expect questions on the statement of profit or loss and statement of financial position, but shouldn’t forget about other comprehensive income, the statement of changes in equity and the statement of cash flows.
A single entity accounts preparation question could be preparation from a trial balance or restatement of given financial statements with common adjustments being for depreciation, revaluation and current/deferred tax (including deferred tax on revaluations) plus a mixture of adjustments on other syllabus areas, e.g. leases, substance over form issues, financial instruments (change in fair value or amortised cost), share issues, government grants, inventory valuation and revenue recognition.
Group accounts preparation questions will provide the separate financial statements (or extracts thereof) of the parent and relevant subsidiary(ies) and associate. Candidates should be prepared to set out the standard workings for goodwill, non-controlling interest, movements in net assets, retained earnings as those are commonly examined. Other common adjustments are intra-group sales of goods, intragroup sales of assets, dividends and fair value adjustments.
ACCA has previously clarified that a consolidated financial statements preparation question could include up to two subsidiaries and one associate, which allows additional scope for examining the disposal of a subsidiary (including as a discontinued operation). Be prepared for such a question.
Make sure that you use the ACCA’s Practice Platform to familiarise yourself with the spreadsheet tool you will need to use when answering accounts preparation questions. This can be found on the ACCA’s website.
Candidates continue to find the interpretations question challenging. In both single entity and group interpretation questions, candidates must avoid making generic statements about the movement in ratios and instead focus on using the information in the question. Use this information to, for example: identify key changes in the period (e.g. change in sales mix, closed down an operation, purchased a new subsidiary); identify transactions that would cause inconsistencies between periods or between balances (e.g. revaluation of assets for the first time, particularly if the revaluation was at the end of the period); identify any changes in accounting policies or estimates; or classification (e.g. one company presents expenses as part of cost of sales whereas another presents as part of administrative expenses).
ACCA has previously clarified syllabus wording to emphasise the importance of the statement of cash flows in interpreting financial statements. Candidates should be prepared for such a question.
Taxation (TX)
Section A: Fifteen Objective Test questions (OTQs). It is important to remember that section A offers the TX examining team an opportunity to test the whole syllabus, so practising on all kinds of TX questions from the practice and revision kit will help build on and complement your existing knowledge.
You should expect at least a couple of these
HEALTH WARNING
constructive response questions with scenarios and much more open requirements. Your answers will need to show sound technical knowledge, but also the application of that knowledge to the question you have been asked. Furthermore, your answer will have to be presented logically so the marker can follow your thought processes. At least 50% of your revision time should be spent answering the section C questions in the practice and revision kit to build up confidence and speed in a way that will also maximise marks.
1. Remember to learn your income tax and corporation tax pro formas.
2. Calculations which would require no more than two or three entries into a calculator can be included in the relevant cell of your pro formas (e.g. time apportioning a salary).
These tips should only be used in conjunction with proper study. We cannot guarantee that these topics will appear in the actual exam as we have not seen the exam papers. Examiners are not predictable so it is vital that all core syllabus areas are revised fully.
OTQs to be devoted to the administration of income tax and corporation tax. So, candidates should ensure they are comfortable with the following:
• Due dates for the payment of income tax (including payments on account).
• Due dates for the payment of corporation tax (including instalments for large companies).
• Filing dates for the income tax and corporation tax returns.
• Penalties and interest for late payments and returns.
Also likely to be tested in section A of the exam are the following topics:
• VAT rules on registration, impairment loss (bad debt) relief, and the SME schemes relating to cash accounting, annual accounting and flatrate schemes.
• Inheritance tax due on lifetime transfers both in the donor’s life and on death.
• Statutory residence tests for individuals.
• Identification of groups of companies for corporation tax loss reliefs and gains.
• Trading loss reliefs for both companies and sole traders.
Section B: Three scenarios each with five OTQs. In section B the questions will be like those of section A but there will be a longer scenario to deal with. This means a slightly different exam skill is necessary as you have more information to work through and each OTQ will require you to find the relevant information or data in that scenario. It is not a difficult skill, but we would hope you have had time to practise an extensive range of section B questions from the practice and revision kit before attempting the real exam.
Section C: Three constructed response questions; two worth 15 marks and one worth 10 marks. In section C you will face the longer,
Calculations which are more complex (e.g. company car benefits) need separate workings which are properly referenced (W1, W2, etc.) and have a heading. Use the cell formulae to link the workings answer into your pro forma – then if you change the working the main body will automatically update.
3. Actually attempt the narrative parts of the requirement – aim for as many sentences as there are marks, with each sentence containing something technical. Keep your paragraphs to no more than three sentences long.
4. Your exam will be in the CBE software and the spreadsheets have some difference to the software you may be accustomed to, so it is crucial you practise using the CBE software, especially for Section C type questions.
5. Remember you cannot insert rows into the CBE spreadsheets. So, leave plenty of space on the page (especially when setting up pro-formas). You may need to add something and you can always go back and move workings up the page. Show workings down the page rather than across the page as it makes them easier to mark. Wellspaced answers are also easier to mark – and you always want to keep your marker happy.
We know that the two longest questions will focus on income tax and corporation tax. These are likely to include the following:
• Employment benefits.
• Property income.
• Relief for pension contributions.
• Adjustments to profit to arrive at trading income for both companies and sole traders – in past sittings we have seen a number of questions in which you have to correct errors in computations included in the scenario.
• Capital allowance computations.
• Chargeable gains calculations.
So, remember to cover the whole syllabus when using the practice and revision kit.
General advice: Finally, remember the pass mark is 50% so you don’t need to be perfect. If you don’t know something have a guess and move on. Sometimes you have to do that in order to get follow through marks in section C questions. If you make a mistake but then use that incorrect figure later in a subsequent calculation, then that’s fine – you can only lose the mark once. In sections A and B never leave an OTQ unanswered − have a guess if you don’t know the answer. It might be right.
• For your strategic level tips go to www.pqmagazine.com
What is the suspense account?
Karen Groves tackles a subject that is likely to crop up in the Level 2 AAT Principles of Bookkeeping Controls assessment
The suspense account is used as a temporary account if the bookkeeper is unsure about one side of a transaction, or if the Trial Balance doesn’t balance. This applies to both manual and computerised accounting systems.
The suspense account will be used until either the error has been identified, or correct double entry established. It is a holding account until the discrepancies are resolved.
For your Level 2 AAT Principles of Bookkeeping Controls assessment you may be required to open a suspense account and process entries to clear the suspense account.
Example
Whilst preparing the company cash book you find a cheque stub with no details regarding who the cheque for £200 has been paid to. The bank account will be credited with £200; however, the debit entry is uncertain at this stage, so a suspense account will be opened:
SUSPENSE ACCOUNT
You later find out that the cheque was for advertising, and can now clear the suspense account as follows:
SUSPENSE ACCOUNT
The bookkeeper has prepared a Trial Balance, and the debits and credits do not balance. The errors need to be investigated and corrected; however, in the meantime, the difference between the debit and credit totals of £500 will be entered as a suspense account balance, to balance the Trial Balance until the errors are identified:
Question
Whilst preparing the company cash book you find a cash withdrawal with no details regarding who the cash for £100 had been paid to. The bank account will be credited with £100; however, the debit entry is uncertain at this stage. You are required to open a suspense account and then show the necessary adjustment when you establish later that day that the £100 was taken by the business owner as drawings.
Today’s date is 1 November 2025.
ACCOUNT
The error has been caused by a payment for rent of £500 being credited from the bank account only, with the debit to the rent account not entered. The accounts and Trial Balance can be updated to reflect the required adjustment:
DRAWINGS ACCOUNT
Answers
SUSPENSE ACCOUNT
• Karen Groves is an AAT tutor and AAT Faculty Director at e-Careers
AML supervision changes: what accountancy said
The latest move to bring anti-money laundering under one supervisory umbrella has not gone down universally well with the profession. Here’s what they had to say…
HM Treasury has decided to create a Single Professional Services Supervisor (SPSS) for all anti-money laundering (AML) and counter-terrorism financing (CTF) supervision in the UK.
The government believes that a public organisation overseeing professional services firms is the most effective approach to AML/ CTF. And it will be the Financial Conduct Authority (FCA) who will carry out the new supervisory functions as part of its remit, and will be tasked with working with the professional services sector, other regulators, and law enforcement agencies to improve the UK’s defences against money laundering.
The FCA will carry out these functions independently of HM Treasury and will be provided with the powers necessary to succeed in carrying out this role.
The FCA will now supervise the 60,000 firms that carry out activities within scope of the Money Laundering Regulations as Legal Service Providers (LSPs), Accountancy Service Providers (ASPs), and Trust and Company Service Providers (TCSPs). In practice, this means that all firms currently supervised for AML/CTF matters by a Professional Body Supervisor (PBS), and all ASPs and TCSPs supervised by HMRC, will be supervised by the FCA.
The implementation of this policy is now subject to the passage of enabling legislation, confirmation of funding arrangements and development of a detailed transition and delivery plan. As such, the date at which the FCA will commence supervision of the professional services sector will be heavily dependent on the availability of parliamentary time. To prepare for this, HM Treasury will publish a separate consultation on the powers that the supervisor.
Lucy Rigby, economic secretary to the Treasury, said: “AML/CTF supervision is crucial work in the fight against crime and corruption which, ultimately, is the job of the state. The FCA will have the powers and resources it needs to help firms comply with the regulations, work closely with law enforcement, and take robust action where a minority of firms continue to help bad actors prosper. Preventing economic crime requires the ongoing support of regulated firms and professional bodies and I look forward to working with you as we make
this change.”
She stressed that despite the efforts of the existing supervisors the current regime is complex and disjointed. The fact that there are 23 different supervisors for professional services firms inevitably leads to inconsistencies in supervision and enforcement and complicates essential collaboration with law enforcement agencies.
In light of the proposals, we asked the accountancy bodies for their reaction. Here’s what they said.
AAT
CEO Sarah Beale: “AAT acknowledges the government’s decision to transfer anti-money laundering (AML) and counter-terrorist financing (CTF) supervision to the FCA. Whilst this change won’t happen overnight, it will be a significant shift for the accountancy sector, and we will all require a clear transition plan. We remain committed to supporting our licensed members with the expert guidance, resources, and reassurance they need to stay prepared and compliant throughout this transition and beyond.
“While there will be challenges ahead, such as ensuring a seamless data transfer and maintaining specialised support, AAT is focused on making this change as smooth as possible. With the direction now set, we’ll work closely with the government, the FCA and other stakeholders to ensure an effective transition, delivering a robust supervisory system that upholds the highest standards for our profession.”
ACCA
Maggie McGhee, executive director of strategy and governance: “We wholeheartedly support the government’s fight against economic crime, but we don’t agree that transferring anti-money laundering supervision responsibilities to the Financial Conduct Authority (FCA) is the right approach. Making this change would be a very significant administrative challenge involving increased costs and data risks.
“The FCA would have to build expertise across a wide range of different sectors, professions and sizes of business, and much valuable existing expertise would be lost, increasing the risk of economic crime rather than reducing it.
“Ultimately, we believe this change is likely to reduce the effectiveness of anti-money laundering enforcement, which goes against the public interest.”
ATT
CEO Jane Ashton: “This is a long-awaited decision following the consultation in 2023 and although not our preferred model we will work with the new single professional services supervisor, the Financial Conduct Authority, to ensure we transition our members as smoothly as possible.
“However, we caution that moving from a system overseen by professional bodies with commercial understanding and established processes will require significant investment and careful planning.
“Early clarity on proposals and a realistic timeline are crucial, as is ensuring that the current support and education for members is maintained, and the knowledge and effective compliance support developed since 2018, particularly under Office for Professional Body Anti-Money Laundering Supervision (OPBAS), is not lost in transition.”
CIMA
Peter Steel, Vice President – Professional Standards and Conduct: “While this is not the outcome CIMA recommended, we recognise the complexity of the current supervisory landscape and the need for a more streamlined approach. We will work closely with our members, HM Treasury, and the FCA to ensure a smooth transition.
“CIMA is proud of the work its Professional Standards team has done over the years to support the Institute’s Members in Practice (MiPs) and ensure that they comply with AML/ CTF legislation. Our strong track record is reflected in our close relationship with the
OPBAS and the exceptionally low level of reported issues among our MiPs and MiPowned businesses.
“When the necessary legislation is eventually put in place our MiPs will be directly supervised by the FCA, but until then CIMA will continue to support them and monitor compliance to the highest standards. We will continue to talk
to HM Treasury and the FCA to keep our MiPs informed as the new model develops.”
CIOT
Ellen Milner, Director of Public Policy: “We can see the logic of a single supervisor but it is not our preferred model – which was for strengthened supervision by professional bodies, overseen by the existing independent body, OPBAS.
“Our concerns raised in the consultation are yet to be addressed by the proposals. The investment needed, both in money and time, to transition the population and effectively police the regime with skilled personnel should not be underestimated.
“Effective supervision must include minimising burdens on the vast majority who are compliant with their AML requirements and providing education to assist firms to comply. Certainty around timelines and the substance of the new proposals is urgently needed for those whose supervision is moving so they can understand how to remain compliant with AML requirements both in the future and the interim.
“We will be doing all we can to support the FCA and our supervised firms with a smooth transition and the maintenance of effective, proportionate AML supervision for our members.”
ICAEW
Parjinder Basra, chair of the Regulatory Board: “We’re disappointed with [the] announcement of the government’s decision to take antimoney laundering supervisory responsibilities away from ICAEW and the other professional body supervisors.
“We believe that this decision will increase the regulatory burden and costs to firms, making business growth more challenging, while creating greater confusion within the regulatory framework and leading to even more fragmentation in the way key information is held and maintained about the activities of professional services firms.
“We intend to continue to engage with Ministers and HM Treasury to ensure that all of the ramifications of this decision are understood, and to suggest alternative ways forward.”
ICAS
CEO Bruce Cartwright: “We are surprised that the government has decided to transfer AML/CTF supervisory functions to the FCA. ICAS, alongside other professional bodies, has made a significant investment in supervision over recent years, with evidence to support a corresponding increase in effectiveness. As set out in our response to the consultation, while we agree that the current approach could be improved, we believe that the better course of action would be to maintain progress through evolution of the existing supervisory framework.”
Robert Mudge, Executive Director of Professional Standards at ICAS, added: “There is a real risk here that a period of uncertainty could have a detrimental impact on the UK’s ability to combat financial crime. Government reform proposals in other areas remain outstanding many years after they were announced – if the same happens here then the outcomes could be extremely serious from a public interest perspective.”
Translating ambition into action
CIPFA’s Amit Verma (pictured) explains the vital role public finance professionals play in driving public sector net zero efforts
We are living in an era marked by constrained public finances and unprecedented high demand on public services. In this context, the urgency around sustainability is often overshadowed and pushed down the priority list. Net zero targets can feel out of reach, and there is still much to be done to turn ambition into tangible outcomes.
The public sector is uniquely positioned to drive global sustainability standards and take the lead in the fight against climate change. Sustainability is not only about creating a better world for all – it also delivers practical benefits such as cost savings and greater efficiency in public service delivery.
For example, Action Renewables, a charity based in Northern Ireland, worked with East Belfast Enterprise to install a 49kW solar photovoltaic (PV) system at their headquarters. The result? Significant reductions in both energy costs and consumption. This example demonstrates that sustainability isn’t just about securing the future – it can generate efficiency and operational benefits here and now.
CIPFA remains committed to improving sustainability reporting, governance frameworks and evidence-based sustainability planning. However, to maintain momentum toward a more sustainable public sector we need continued government support and decisive action. This includes substantial public and private investment in energy infrastructure, technology and innovation and skills development –priorities outlined in the UK’s net zero strategy and carbon budget and growth delivery plan.
Yet the government has not committed further investment in the Public Sector Decarbonisation
Scheme (PSDS), which has already awarded over £2bn to thousands of projects since 2020. Alongside this funding uncertainty, the lack of long-term planning poses a major barrier to progress. Frequent policy changes in Westminster, combined with wider financial pressures, have created a short-term, crisisdriven mindset that prevents public sector organisations from developing and delivering long-term sustainability strategies.
Further afield, Denmark stands among the
most advanced countries in implementing the UN Sustainable Development Goals (SDGs), ranking third in the global SDG index. In July 2025, the Danish government published an updated Action Plan for the UN Sustainable Development Goals, setting a clear framework for achieving a 70% reduction in greenhouse gas emissions by 2030 and carbon neutrality by 2050 – building on a 44.7% emissions cut already achieved between 2005 and 2023. Denmark’s success reflects decades of prioritising energy security, investing in renewable energy, and maintaining consistent political commitment across governments while collaborating with neighbouring countries to strengthen its energy network.
The UK can learn much from Denmark’s approach – from its investment in renewable energy, energy efficiency and carbon taxes, to sustainable urban planning (such as cycling infrastructure) and the integration of organic food into public sector catering. By developing strong public–private partnerships and drawing lessons from Denmark’s green infrastructure financing model – supported by government and pension funds – the UK can unlock capital funding for major sustainability projects and accelerate its green transition.
At Public Finance Live Northern Ireland in October, CIPFA’s sustainability workshop explored many of these challenges, highlighting the need for close collaboration across public, private and third sectors. As public finance professionals, we must be willing to engage beyond traditional boundaries and embrace innovative ways of working.
CIPFA continues to support finance professionals on their sustainability journey across its three business pillars – CIPFA Thinks, Supports and Develops. Ongoing projects include supporting standard setters such as IPSASB in developing the first public sector sustainability standards, working with central and local government bodies to embed sustainable finance practices, and collaborating with membership organisations such as ICAEW to upskill professionals for future challenges.
However, it is concerning that political support for sustainability initiatives appears to be waning, as this risks slowing progress across the public sector. For early-career public finance professionals, taking sustainability seriously is essential. If you are just beginning your journey in public finance now is the time to ask yourself: how can I contribute to building a greener, more resilient public sector?
• Amit Verma, Sustainability Policy Manager, CIPFA
AAT Distance Learning AAT Distance Learning
Premier Training has been named Online College of the Year at the PQ Magazine Awards 2025.
The award recognises Premier Training’s improvement plan, which has boosted AAT pass rates, and the launch of its prac�cal work experience programme, Premier XP.
Premier Training’s commitment to social mobility, mental health and local communi�es also contributed to the win.
With AAT Distance Learning Training Provider of the Year awards in 2024 and 2025, it has been an outstanding year for the team.
Start your AAT distance learning course any day and study at a pace that ts around your job and commitments.
All courses include the op�on to pay across interest-free instalments.
Get Started Today
Start your studies the same day24 hour online access with instant access to tutor support.
Learning Resources
Award winning learning resources including printed books, eBooks & e-learning, videos and quizzes.
Assignments
Prompt marking turnaround –marked by a tutor (not a computer).
Xero Advisor Cerঞcaঞon
Premier Training has teamed up with Xero and is pleased to offer the Xero Advisor Cer�ca�on Equivalency Course FREE OF CHARGE to anyone who enrols.
Five ways to get yourself noticed
GAAPweb offers five top tips to help you land that dream job
In today’s competitive accountancy
job market, standing out is essential –especially for PQ accountants aiming to advance. Many employers don’t advertise roles publicly; they search CV databases to find candidates with the right skills.
Here’s how to boost your visibility on GAAPweb and similar platforms:
1. Upload a keyword-optimised CV
Your CV is often the first – and sometimes only – impression you make. Employers search for terms like part qualified ACCA, management accounts, or financial reporting. Make sure your CV highlights qualifications, software skills and experience relevant to your PQ level. Keep it current and detailed. Updating your CV as you pass exams or take on new responsibilities improves your chances of
appearing in recruiter searches.
2. Apply early and often
Timing matters. Early applicants often secure interviews before a role closes. Set up job alerts to be notified as soon as positions appear.
Applying promptly shows enthusiasm and increases visibility. Don’t hesitate to apply for multiple roles that fit your skills and career goals – consistency pays off.
3. Subscribe to newsletters
Newsletters from GAAPweb and similar boards deliver job opportunities, salary data and career advice straight to your inbox.
For PQ accountants, staying informed on market trends and salary ranges demonstrates professionalism and helps you stand out to employers.
Get
Started Today
Start your studies the same day - 24 hour online access with instant access to tutor support.
4. Engage with career resources
Job boards aren’t just for applications – they’re career hubs. Read articles, download resources like salary surveys, and follow updates on social media.
Engaging shows commitment to your professional growth – something employers notice.
5. Tailor every application
Avoid sending the same CV and cover letter for every role. Research companies using employer profiles and adapt your application to reflect their goals and culture.
Highlight skills and experience that match the job description, explaining how your PQ training adds value. Customised applications always stand out to employers.
• Thanks to GAAPweb.com for this article
Learning Resources
Award winning learning resources including printed books, eBooks & e-learning, videos and quizzes.
Dear Karen
Ask PQ’s very own agony aunt Karen Young when you need advice from a real expert. Email your dilemma to graham@ pqmagazine.com, and he will pass on the best ones to Karen
THE DILEMMA
I’ve heard that having a mentor can really accelerate your career, but I’m not sure how to find one or what to do once I do. How can I make the most of a mentoring relationship?
KAREN’S RESPONSE
Mentorship can be a powerful catalyst for personal growth and development. The first step is identifying what you need: career guidance, industry insight, or help navigating workplace challenges. Once you’re clear, start looking within your network. This could be a manager, senior colleague or someone you admire professionally. LinkedIn and alumni groups are also great places to connect. And it can be someone outside of your organisation, which I often find beneficial.
When reaching out, be specific. Let them know why you’re interested in learning from them and what you hope to gain. Most people are happy to help when they see genuine intent.
Once you’ve found a mentor, be proactive. Set clear goals, agree on how often you’ll meet, and come prepared with questions or updates. Respect their time and show that you’re committed to applying their advice.
Mentorship works best when it’s a two-way relationship. Share your progress, be open to feedback and express appreciation. This builds trust and makes the experience rewarding for both of you.
Remember, mentoring doesn’t always have to be formal. Sometimes a single conversation can shift your perspective or spark a new idea. Stay curious and be open to learning from those around you. The right guidance often appears when you’re ready to act on it.
• Karen Young is a director at Hays. She is passionate about helping people to find the right job and companies the right person
Stressed out CFOs!
What is worrying CFOs and senior finance leaders
in 2025?
CFOs are facing mounting stress –and admit they just can’t get their work done in a normal working week.
AccountsIQ’s ‘CFO Mindset Report’ found almost all (99%) of senior finance leaders across the UK and Ireland work evenings and weekends, with nearly two-thirds (64%) doing so ‘often’ or ‘always’. When asked what is keeping them up at night CFOs ranked timely access to data (25%) as their top worry, overtaking both rising costs and inflation (25%) and cybersecurity threats (24%). Compared with data from the Mindset Report 2024, concern
PQ JOB OF THE MONTH
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Daily exposure to monthly management accounts is ideal, and you will likely be studying for your CIMA/ACCA exams, although a ‘stopped studier’ is also welcome to apply. This is a varied role, including daily accounting, bank reconciliation and supplier statement reconciliation, as well as resolving queries with customers and suppliers alike.
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over data access has increased by 5% from 20%, while anxiety about inflation and cybersecurity has fallen from 40% and 36% respectively. This signals a shift from external risks to operational challenges within finance teams themselves.
Show us the perks!
There has apparently been a shift in the compensation expectations of finance and accounting professionals, with the once nice-to-have perks and benefits becoming the make-orbreak factor for employees.
A recent Robert Half survey found just 2% of accountants said they would not consider alternatives to a pay rise.
Once driven by salary negotiations, finance professionals are now weighing the full package, from hybrid working and remote options to professional development, before making their next move.
Rober Half’s Phil Boden said: “While salary remains important, it’s no longer the sole driver of career decisions. Today’s professionals are placing increasing value on benefits that support their
The data gap is having a real impact on decision-making too. Some 65% of respondents said financial decisions are made without enough information, and 29% admitted this happens ‘often’ or ‘always’.
Darren Cran, CEO of AccountsIQ (pictured), said: “Finance teams are under intense pressure to deliver accurate insights faster, often without the right tools or timely data. Our research shows that this is leading to overwork and poor-quality decision-making. Intelligent automation offers a real opportunity to change that, enabling CFOs to make better decisions based on live data and freeing up time for strategic thinking. A healthier work-life balance is achievable when finance functions are truly data-driven.”
wellbeing, work-life balance and long-term career growth.”
Top firms for working families
Working Families has announced its annual list of the top flexible and family-friendly employers in the UK. Organisations from across the finance, energy, education and public sector have earned their place on the charity’s list of Top Employers, demonstrating that sectors across the spectrum are seeing the value in putting people first.
This year’s top 10 employers for working families are (in alphabetical order): Audit Wales, DAC Beachcroft, Grant Thornton, Hill Dickinson LLP, Imperial College London, Independent Living Fund Scotland, Mishcon de Reya, NELFT, Pinsent Masons and the Welsh Parliament (Senedd Cymru).
The PQ Book Club: books you should read
Ideas
Don’t Die, Companies Do: Future-proof your business by creating an ideas-obsessed enterprise, by Hari Abburi (Wiley, £22)
Author Hari Abburi firmly believes ideas create more value than customers, but admits it is rare to find anyone building ideas-centric enterprises. He feels ideas are more important than customers because they are a more powerful tool for driving agility. When he talks about agility Abburi wants companies to have the capacity to anticipate and build solutions for the possibilities that customers themselves have not yet
imagined.
Abburi has created a ‘thinking on the edge’ model, where he sees four key ‘edges’ that determine whether companies can start to use their imagination.
The big problem is that to make all this happen companies must develop capabilities outside their core expertise, be prepared to break industry moulds, and redefine market expectations.
Ultimately, Abburi wants us to think ahead rather than look back, because that is where you will find all the good ideas. But he is concerned many companies are weighed down
by bureaucracy and a low-risk mentality. This can stifle innovation, and it means by searching for order and compliance the chances of creating an ideas culture dies too.
PQ rating 5/5: We are all prone to hide behind the fear of failure when it comes to new ideas, and Abburi is right to suggest the relentless pursuit of an idea for the future is the single hardest thing a company can do. But companies must let imagination thrive, as this is an attribute humans do better than the computers (well, at least for the moment).
Traitor or faithful?
Many of you will know ACCA accountant Jean-Paul Noel-Cephise from the PQ magazine annual awards. He is a fantastic singer who always helps to make the night go with a swing. What many people don’t know is that some time ago he wrote a book about internet dating. We are thinking this must be the reason why he and another five men starred in the Femail Magazine (it’s part of the Daily Mail) talking about whether they were monogamous or a shameless cheat.
The magazine picked up on the much-watched BBC series The Traitors, and you will be pleased to hear our Jean-Paul is very much a ‘faithful’!
Just so you know he is single and would love a serious relationship now, but no one will give him a chance.
Jean-Paul will be back at next year’s awards, and together we have planned a big surprise for you…
Tax education needed too!
The government’s move to introduce more financial education into the national curriculum in UK schools has been welcomed by the Association of Taxation Technician (ATT). However, it added that “a full understanding of personal finance must also include an awareness of taxation, a key area often overlooked in traditional financial education”. ATT is recommending a four-pronged approach:
1. Integrate age-appropriate tax education into financial literacy lessons at all key stages.
2. Develop teacher resources and training to ensure educators feel confident delivering taxrelated topics.
3. Collaborate with bodies, such as the ATT and HMRC, to provide practical and accurate content.
4. Use real-life examples, such as payslips, VAT on purchases and public spending to make the learning relevant and engaging.
Jane Ashton, CEO at ATT, said: “By including taxation within financial education, we can help young people not only understand their own finances but also appreciate their role as active participants in society. The ATT stands ready to work with government and educators to make this a reality.”
Hidden cost of success
New research from King’s Business School has suggested too much success can be a problem, at least when it comes to innovation.
The study, carried out with University of Liverpool Management School, University of Hohenheim and Rotterdam School of Management and Erasmus University, and published in Research Policy, found that employees who experience exceptionally high levels of success are less likely to see their next idea implemented.
Researchers suggest the reason is that extreme success can inflate self-confidence and perceived social status and reduce the willingness to develop ideas as part of a team.
Two additional experiments backed up the findings, showing that people who had achieved outstanding success were more inclined to work alone.
The researchers concluded that organisations which rely on employee innovation platforms or idea programmes should recognise and reward success but also take care not to let top achievers become isolated from their colleagues. Sustaining innovation, they argue, depends on keeping high performers embedded in teams, open to collaboration and aware of how inflated self-perceived status or a focus on maintaining status can quietly stall creativity.
On your radio
HMRC has launched a new campaign to help customers get ready for MTD for Income Tax. This is, after all, the biggest change to personal tax since HMRC launched Self Assessment more than 30 years ago.
If it is working you should have seen more ‘activity’ around MTD across social media, online and on sector-specific radio stations. The ads stress the need to use recognised software (such as an app on your phone or laptop) to keep digital records of income and expenses throughout the year. Quarterly updates will then need to be sent to HMRC.
HMRC will have its work cut out, as figures suggest around 200,000 landlords and self-employed businesses affected by the changes are still currently ‘unrepresented’.
New look Buzzacott
London-based firm Buzzacott has launched a refreshed brand and new website, designed “to reflect its growth ambitions and focus on delivering clearer, more connected advice to clients”.
Its press release continued: “The update represents the most significant change the firm has made in years and comes as clients face increasing complexity across regulation, technology, and markets. While many mid-tier firms are turning to mergers or private equity backing to compete, Buzzacott is staying independent, investing in its own growth to give clients a trusted alternative to the larger networks.”
Tony Hopson, Managing Partner at Buzzacott, explained: “Our new identity speaks to our future. For over 100 years we’ve been defined by an innovative strategy and bold decisions which has helped us get to where we are today. Our brand refresh is another indicator that we’ll continue to lead and innovate as we grow.
“The refresh gives Buzzacott a distinctive new identity that works harder for its people and clients.”
