World Bank joins ACCA's Approved Employer Scheme

This status acknowledges the high standards of training and development which the World Bank provides for its employees, whether they are qualified accountants, who are already ACCA members, or as students or affiliates who are aiming to become qualified.

The World Bank joins nearly 8,500 companies around the world who are Approved Employers, including ABN AMRO, BP, HSBC, KPMG, Canadian Imperial Bank of Commerce (CIBC), Inland Revenue of Singapore and GlaxoSmithKline.

Tony Hegarty, Chief Financial Management Officer of the World Bank, said: “The knowledge required to function effectively as a financial management specialist in today’s world continues to grow at an unprecedented rate. The continuing development of professional competence and lifelong learning for our staff are critical if they are to meet these increasing knowledge and skills expectations.”

Hegarty added that in addition to enhancing technical competence, continuous skills improvement promotes confidence and pride in one’s work and enhances effectiveness.

“Ongoing professional development is a strategic priority of the World Bank’s Financial Management Sector as we strive to equip our staff to support the improvement of public and private financial management practices in partner countries,” said Hegarty.

Tony Osude, Head of Learning And Development at ACCA , said: “As an ACCA Approved Employer, the World Bank has demonstrated that it meets global best practice in the provision of learning and development opportunities, and we welcome them to ACCA’s expanding global family of Approved Employers.

The award gives the World Bank well-deserved international recognition for the quality of support and training they invest in their employees.”

To become an Approved Employer, ACCA assesses organisational training statements and undertakes a performance review which ensures that ACCA’s global training and development standards are met throughout the organistion.

ACCA’s Approved Employer programme complements ACCA’s global continuing professional development (CPD) scheme ACCA Realise. Under this flexible scheme, relevant workplace learning, mentoring, e-learning, writing and presenting business articles are all recognised as CPD activities in addition to traditional activities such as attendance at courses and seminars. CPD allows accountants to keep their skills and knowledge continuously updated after qualifying.

FTC Exam Tips Core Papers

FTC Exam tips June 2007 Core Papers

Paper 3.5

Key Areas:
A fundamental appreciation of the key activities associated with strategic analysis, choice and implementation will always be required in interpreting the scenario.
The relevance of ethics and corporate governance to strategic decision making
Issues related to globalization and international business management
Marketing and how it may be influenced by ethics and globalisation
Be able to comment in general on how things like HR and IT can help underpin a strategic plan

Paper 3.6 ACR (IAS & GBR)

Section A
This compulsory question will be on the preparation of consolidated accounts and the twist that is due is that it will have a foreign subsidiary.
Section B
Mixed scenario based questions involving some of the following standards
Impairment
Share based payments
Deferred tax
Financial instruments.
Reirement benfits
Discussion question on accounting theory in repect of recognition and measurement issues

Paper 3.7

Section A:
1) OverseasNPV:ThistopicwaslastexaminedinDecember2003andthereforewillbeoneverybody’stiplist.Thespecificitemsthatyouneedtobefamiliarwithare:theapplicationofdoubletaxagreements,remittancesfromsubsidiaries,useofpurchasingpowerparitytheoryandtheoverallstructureofanOverseasNPV.ExcellentquestionsareAxmine(Pilot94)andAVTO(Dec03).HehasalsowrittenaslightlydifferentstyleofquestionWickern(Dec01)wherehegivesyouallthePVcalculationsinthequestionandasks you to analysis the numbers. This is worth reviewing. Basic awareness of political and economic risk is essential.
2) Risk management:
CurrencyRisk:ScottwroteawonderfulquestioncalledLammer(Q2Jun06)whichyoushouldreviewindetailasitincludeshismaintricksonallthemajortechniquestohedgetransactionrisk.ItisalsoworthreviewingVertid(Jun95)inwhichScotttakesamoretheoretical approach to currency risk.
Interestraterisk:Thistopicappearedasacasestudyinthelastexam.However,beawarethatyourexaminerhasalreadywrittenacasestudythatcombinedCurrencyRiskandInterestraterisk(Autocrat-December2002).Playitsateandreviewthistopic.Excellent questions are HYK Communications Dec (99) and Interest Rate Hedge (Jun 05).
3) Huntingdownthediscountrate:WACC-RiskadjustedWACC–APVcalculationswithinthecontextofastandardinvestmentappraisalquestion.HoweverriskadjustedWACCcouldalsobeexaminedwithinthecontextoftraditionalgearing.WACC-Jetter(c)(Jun02)andSemer(a)(Dec05).RiskAdjustedWACC–RomageJun(00).TraditionalGearing-Bentras(Dec01).APV–Strayer(Jun 02).
4) MergerandAcquisitions:AFCFcalculationpossiblywithinthecontextofGoingPrivate.Alsoreviewtheshareforshareexchange style questions Raywood( Dec 92).
Section B:
1) Economic Value Added – EVA This is a topically area and you should review Toutplut (Jun 02) and Remuneration (Dec 04).
2)PortfolioTheoryandCAPMHasder(Jun03)isanexcellentquestionasitcoversbothPortfolioTheoryandCAPMcalculationsandthetopicofinternationaldiversification.ThePortfolioTheorysectionistechnicallydemandingasyouaregiventhecovarianceasopposedtothenormalcorrelationcoefficient.ItisalsointerestingtonotethatinScott’sanswerhecalculatedthecoefficientofvariation for the first time. This will now be a standard requirement in all portfolio theory questions.
3) Term Structure of Interest rate - review Bond Prices (Jun 03) and BNG (Dec 00)
4) Internationaleconomics–I.M.F-(Dec96),Currentaccountdeficit(Pilot01),Foreigntraderisks(Jun01)andPoliticalrisk(Dec01).

FTC Exam tips Optional Papers

Paper 3.1
Q1 Risk appraisal, risk management and audit strategy
Q2 Assurance services - reporting on narrative statements egg environmental reports
Q3 Matters and evidence when reviewing files before signing audit reports
Q4 Audit reporting - application of ISA 700
Q5 Professional conduct and ethics
Q6 Current issues

Paper 3.2 – ADVANCED TAXATION PAPER
1 - IHT including lifetime and death gifts and the extended definition of domicile for IHT.DTR BPR and gift with reservation. Death Estate including valuation rules.
2 - CGT – Chattel rules, part disposals, principal private residence relief, gift relief, Incorporation relief.
3 - Income tax computation including property business profits, employment income Calculation of benefits – salary versus company car or mileage allowance versus company car. Share options and share incentive plans. Overseas aspects (including overseas aspects definitions of residency and ordinary residency) and DTR.
4 - National Insurance
5 - Financial planning – sources of finance, lease versus buy, investments including ISAs the Financial Services and Markets Act 2000. Pensions
7 - Close companies maybe a letter on this.
8 -Corporation tax including IBA, loss relief (S393A) and group and consortium relief. Overseas aspects of corporation tax including controlled foreign companies and transfer pricing.
9 - VAT – cash accounting scheme, annual accounting scheme, due date for registration.
10 - Stamp duty land tax

Paper 3.3
* Contribution based decision-making – possibly involving expected values, maximax, maximin & minimax regret.
* Practical aspects of pricing policy
* Performance evaluation - NFPIs
* The strategic framework – specifically a question based around the examiner’s article on “Business Strategy and Performance Models” (Student Accountant – April 2006). This is likely to focus on Porter’s 5 Forces

Paper 3.4

• Value of information systems
• Groupware
• Data warehousing and data mining
• Outsourcing
• SWOT
• Earls three legs
• Earls Grid
• Information strategy
• Virtual company
• Business and IT strategies

FTC Exam Tips June 2007 PArt 2 Papers (b)

FTC Exam Tips June 2007 PArt 2 Papers (b)

Paper 2.4 FMC
• Investment Appraisal; to include NPV, IRR, tax, relevant costs, risk & sensitivity and lease or buy
• Sources of Finance; to include gearing, ratios, rights issues and other methods of issue and the problems of SME’s
• Working Capital Management; to include cash and/or stock
• Budgeting; to include budgetary systems and cash budgets
• Variance calculations
• Organisational objectives

Paper 2.5
Group balance sheet with an associate undertaking and fair value adjustments.
Cash Flow
Key accounting standards include: impairment, leases, segmental reporting.
Accounting theory based on the information needs of users.


Paper 2.6

Regular Tips
ETHICS - Objectivity Threats, Conflict of Interest (see below)
PLANNING - Practical Audit Risk Scenarios
CONTROLS - Suggesting control objectives and procedures
SUBSTANTIVE TESTS - Inventory, Receivables
REVIEW/COMPLETION - Going Concern audit work
REPORTS - Practical Scenarios
INTERNAL AUDIT / CORPORATE GOVERNANCE - Business Risk, Comparison of External v Internal Audit, Audit Committees

Ftc Exam tips Part1 Papers

ACCA JUNE 2007 EXAM TIPS

Paper 1.1 PFS

(i) Company accounts

(ii) Consolidated balance sheet

(iii) Interpretation of accounts

(iv) Cash flow statements

(v) Accounting Standards and theory

(vi) Incomplete records

(vii) Partnership accounts

Paper 1.2 Financial Information for Management

The paper will consist of 25 MCQs of 2 marks each and 5 long questions of 8-12 marks each. The MCQs will vary in difficulty, but the variety will ensure that the paper reflects the syllabus. The five long questions will be a mix of (mostly) calculations and (a few) written marks. The vast majority of the marks in this paper will be for calculations.

The nine key areas of the syllabus will make up the bulk of the exam paper:

* Cost classification and behaviour.

* Material, Labour and Overhead costs.

* Absorption and Marginal Costing.

* Process Costing.

* Standard Costing (includes variances).

* CVP analysis (includes break-even).

* Pricing Methods.

* Relevant Costing

* Limiting Factors and Linear Programming

Paper 1.3 Managing People

Primary Tips:

Structure – forms of Organisational Structure

Culture – Handy and comparative theories

Motivation – Herzberg and comparative theories

Role of Management

Effective Communication Practices

Management of Diversity/Equal Opportunities

Secondary Tips:

Management and Leadership

Management by Objectives

The Learning Process – Mumford and Kolb

Recruitment and Selection

Ftc Exam tips Part 2 Papers

Ftc Exam tips Part 2 Papers (a)

Paper 2.1
Managing Information Systems
* Accounting for IS/IT costs
* Staff roles and responsibilities
* Flat project based structure
* Project management and control
* Centralisation/decentralisation
Designing Information Systems
* Methodologies
* Modelling
* Invitation to tender
* Quality software characteristics
* Decision table
* Testing
Evaluating Information Systems
* Changeover techniques
* Documentation
* Training
* Maintenance
* Post implementation issues


Paper 2.2
Offer and acceptance.
Partnership
Agency
Director’s duties
Capital and financing of companies.


Paper 2.3
This is the 12th and last Paper 2.3 examination being set by the examiner. These may be the important areas this time in June 2007 examination
Section A
Q1 - Corporation Tax
CT Losses with adjustment of profits with capital allowances & industrial buildings allowance and some calculation of chargeable gain.
Q2 - Income Tax
Trading income assessment, Employment Income leading to income tax and possible gains tax payable.
Section B
Q3 - VAT
VAT return - calculation of VAT payable
Default surcharge
Cash accounting
Tax point
Q4 - CGT
Capital Gains Tax
Rollover and Gift Relief
Capital losses
As from June 2005 exam, the format of the exam has changed and questions 5 to 7 can now be set on any topic
Groups – losses or Gains group
Partnership with losses
Disposal of business with capital allowances, CGT and some planning
CT – Long period

Continued Growth and Success in 2006 for ACCA

Growth in student (14%)and membership (5%) numbers was impressive, with new totals of 296,056 and 115,345 respectively. Globally, the fastest member growth area for 2006 was in South East Asia and Africa, while Central and Eastern Europe saw particularly high student increases. Member retention was at a high of 97%.

Long-term working partnerships were also forged with leading global organisations including CGA Canada and other accountancy bodies in countries including Argentina, Botswana, Cyprus, and Egypt.

Commenting on the successes of 2006, Allen Blewitt, ACCA’s Chief Executive, said: “Extending our global reputation through partnerships has been a particular success in 2006. We now work with over 50 accountancy bodies around the world. With these partners, we are extending global recognition and increasing the range of services available to our members. ACCA’s qualifications are now taken in 140 countries – all under the same global syllabus and examination methodology.”

In 2006, ACCA won new significant consulting projects in Jamaica, Kosovo, Pakistan, Poland, the Slovak Republic, Sierra Leone and Trinidad & Tobago. ACCA also made significant contributions to regulatory policy around the world, including working with the Australian Tax Office on income tax assessments and on the liberalisation of services, offshore funds and companies regulation in Hong Kong.

ACCA also developed its influence in the public sector, notably in the healthcare field. A study tour was held in Beijing with senior financial managers from local hospitals. And ACCA also launched its healthcare manifesto called Accounting for the Nation’s Health, which received substantial exposure in the UK and US.
Another major development in 2006 was the development and launch of the Cambridge International Certificate in Financial English (Cambridge ICFE) developed through ACCA’s partnership with the University of Cambridge English Speakers of Other Languages (ESOL). The first examinations will be taken in May 2007.

During the year, ACCA launched its new qualification, the result of extensive consultation in 2005 amongst members. Putting ethics and professionalism at the heart of accounting, the new qualification includes a new Professional Accountant module examination and a compulsory ethics module. The first examinations will take place in December 2007.

Blewitt concluded: “The future goals set by ACCA’s Council are challenging - by 2010 we aim to be the leading global professional accountancy body by reputation, influence and size. We value the views of our stakeholders on how we should take ACCA forward and it is encouraging that through surveys, 97% of Approved Employers said they intended to remain with ACCA and 80% said they would recommend the qualification to other organisations.”

Key Challenges and Opportunities for CFOs

An international panel of distinguished speakers from ACCA, Government and business shared their views and expertise on a wide range of subjects, including: the impact of Basel II and global regulation on the banking sector; the adoption of XBRL and related standards development; narrative reporting; money laundering; and sustainability reporting.

In his key note address, Dennis Yeates, ACCA President, focused on professional ethics. With ethical decisions not as clear cut as choosing between right and wrong, Yeates contended that this is a significant challenge for CFOs. He argued that, in addition to maintaining their technical competence, professional accountants must attend to the development of appropriate attitudes and behaviours.

The last session of the conference addressed the need to recruit more women in to the accounting profession in Pakistan. Ms Kashmala Tariq, Member National Assembly, who has spearheaded legislative reform to promote gender balance, appreciated ACCA's role as a modern professional accounting body, committed to advocating a role for women in the accounting profession. With young girls in schools and colleges outperforming boys, the prospects for women in the profession in Pakistan are bright.

Paper 3.1 – Hot Topics for June 2007 exams

Audit and Assurance Services

Paper 3.1 – Hot Topics for June 2007 exams

For 3.1, the hot topics for this coming June 2007 exams include:

a) Business risk identification (see past exam papers from June 2003 to Dec

2005). Prepare for identification of business risks and how the company

should manage the risks or what internal controls will help to reduce those

risks. See June 2003 Q2 and Dec 2004 Q1. Also linking business risks to FS

risks like Dec 2003 Q1a.

b) Almost likely a question on identifying principal audit risks/financial

statement risks. See past papers (plenty of them esp. the ones in 2006). Would

expect maybe the same question for financial statement risk as in June 2006

Q1b)

c) Group audit and acquisition. Impact of an acquisition on the audit (see past

year exam like Pilot Q1, Dec 2001 Q1). Include audit strategies/approaches.

See June 2005 Q2 and June 2006 Q2 on due diligence and what factors to

consider before accepting the engagement. Though appeared recently, may

come back again!

d) Planning is important. Planning issues to consider – See June 2002 Q2a, Dec

2002 Q1a. Calculate planning materiality as in June 2006 Q1a)

e) Auditing prospective financial information, PFI (see Dec 2002 Q2), including

reporting on PFI. Take note!

f) Quality controls – practice management, setting of fees, paying commission

for referrals. See Dec 2001 Q2.

g) Working papers – See article in Feb 2007 student accountant magazine. Very

important. The article already stated the possible question she will ask. My

question is “Explain the reasons for preparing and keeping working papers and

the importance of reviewing them”. Read, understand and memorise!

h) Insurance (define PII and FGI, factors affecting the amount of cover, adv and

disadv of insurance).

i) Accounting problems/issues (the usual Q3) - Important areas include leases,

deferred tax, related parties, earnings per share, provision, government grants,

impairment, investment property, going concern.

j) Ethical issues facing the auditor – practice lots of Q5 and take note of

confidentiality. (Identify circumstances in which the disclosure is permitted or

required and discuss the factors, which may justify disclosure under public

interest)

k) Assurance and other services – review, agreed upon procedures. Explain why

agreed upon and compilation engagements do not (usually) meet the

requirements for an assurance engagement and illustrate the form and content

of a report of factual findings

l) Ownership of documents/books and working papers. Explain the general

principles governing the ownership of and right to access to documents and

papers. Explain the legal right of lien and describe the circumstances in which

it may exercised. The extent to which clients and third party may have access

to documents and papers.

m) Responsibility for summarized financial statements , financial reporting on the

internet (see Dec 2003 Q4bii)

n) Reporting – The usual Q4 audit report. But must also be prepared for

Review/Agreed upon procedures and reporting. (see item k above)

o) Outsourcing of accounting function to service organization and it’s impact on

the conduct of the audit (relying on service organization)

p) Identify circumstances in which auditor may have legal liability and explain

the other criteria for legal liability to be recognized. Distinguish between

liability to client and liability to third party. Lastly, discuss the advantages and

disadvantages of audit liability claims being settle out of court. (this section

never being examined, maybe a Q6 this June??)

q) Environment and the auditor (Pilot Q6). Small company audit exemption. Any

recent article by Kim? If yes, must study that. If no article, do not attempt Q6.

Do Q4 instead.

THE END

Paper 2.6 – Hot Topics for June 2007 exams

Paper 2.6 – Hot Topics for June 2007 exams

Professional ethics including conflict of interests (see June 2003 Q3a) and confidentiality (See

Dec 2003 Q6).

Factors to consider before accepting an engagement (a fairly standard question that every student

must prepare) plus appointment clearance procedures and engagement letter (content, must we

send it every year?) – See new Pilot Paper F8 Q2, June 2004 Q2.

Internal audit (IA) will be featured. The role of IA in risk management and organizational control

(See Dec 2001 exam qn). IA vs External Audit, scope and objectives of IA (See old Pilot Q3)

Probably one question on risk assessment, identify risks and what audit procedures will you

perform to address the risks. Could combine with analytical procedures (see below), given two

years of BS and P&L, use AP to comment on the company’s performance and identify the risks

and then what you will do in response to those risks. (Practice lots of risk questions). See

management of risk – See June 2004 Q1. (can combine with role of IA in risk mgt, Dec 2002 Q6)

The control objectives and internal control procedures you would expect to find in a purchase or

payroll systems. Recommendations for improving weaknesses found. Theory of IC important too!

The substantive tests used to gather audit evidence in respect of major assertions (completeness,

existence, valuation and allocation, accuracy, cutoff), especially in relation to accounts receivable

and creditors/accrual audit. See Pilot F8 Q1 (Important to note Alan’s style of procedures)

Prepare for contingent liability, provision audit. (see June 2003 Q3b)

Review stock audit – see perpetual inventory system, stocktake instruction (See June 2003 Q2

and June 2004 Q3).

Corporate governance (benefits, why the codes are not compulsory) audit committee (functions,

how it increase EA effectiveness).

Review vs Audit (See Dec 2001 Q5).

The use of analytical procedures during the planning, evidence gathering and review stages of the

audit process. (IMPORTANT TOPIC!) – do all past papers with this AP topic.

Working papers (types - permanent vs current file, content of WP, and what makes a good set of

WP, see the latest Feb 07 article on WP).

Responsibilities of auditors and directors over detection of fraud. Actions by auditors if fraud

discovered.

Never give up audit reporting. Must know the types of report and what report to give under

different situations. Link up fraud and audit report. (See June 2002 Q3)

Audit of small company (See Dec 2004 Q5)

Take a look at the entire new Pilot Paper for the new syllabus Paper F8 (it’s set by Alan!)

** LOOK OUT FOR ANY ARTICLES BY ALAN, maybe one more nearer the exam. This is the

fifth exam by Alan. The above topics are just my GUESSES. Use at own risk!

Best Of Luck For the Exams

ESRA to Drive European Sustainability Reporting

Helle Bank Jørgensen, chair of ESRA and Partner with PricewaterhouseCoopers explained: “The launch is very timely as more and more companies disclose how they comply with the growing demand from stakeholders to take responsibility and operate transparently, by issuing sustainability reports outlining their social and environmental policies and performance.”
The aim of this new, exciting ESRA project is to improve sustainability reporting in Europe. Each European participant (all committed sustainability experts) provides a summary of their respective country’s reporting developments. These reports, along with key regional statistics provided by Corporate Register, have today been launched on the new ESRA website – www.sustainabilityreporting.eu

Robert Strauss, head of unit in DG Employment at the European Commission says: “This is a particularly useful project as it acts as an information source for anyone wanting information on European sustainability reporting. It also drives performance improvements and enables countries and individual reporters to compare their performance with other reporting regions and potentially learn new best practice methods and trends that could be implemented in their own reporting.”

Participating countries in this pilot year are the UK, France, Portugal, Switzerland, Belgium, Russia Austria, Denmark, Finland, Ireland, Italy, Netherlands and Sweden, along with a contribution from Robert Strauss describing the overall situation in Europe. There are plans to invite other European countries to participate in the 2007 project.

Vicky McAllister, social and environmental project co-ordinator at ACCA and the UK’s participant in ESRA says “These reports will be useful for companies, governments and assurance providers to benchmark sustainability reporting practices against other countries, for example, there is a clear trend towards integrated financial and sustainability reporting, to varying degrees for each country. The UK is one of the countries who are moving towards this method of reporting, with many large listed companies including detailed sustainability information in their Annual Reports, some even integrating their entire report. SRI analysts can also consult the website to get an overall picture of which European countries are ahead in the field of sustainability reporting”

Triumvirate Join Forces for Indian Training

The diploma provides extensive knowledge about the concepts, principles and applications of international accounting standards in the marketplace. Starting April, the staff will be trained by specialist finance and management tuition providers from GTG.

ACCA is the largest and fastest-growing global professional accountancy body and has 296,000 students and 115,000 members in 170 countries.

Commenting on this initiative, Piyush Mehta, Senior Vice President & HR Leader, Genpact said, “Genpact is pleased to offer its employees in India access to an internationally recognised qualification, in partnership with ACCA and GTG. This programme provides our employees with the platform to further their domain knowledge and augment their understanding of international accounting standards. This alliance is yet another step in our quest to facilitate growth and excellence among Genpact professionals.”

Andrew Steele, Head of ACCA’s Strategic Business Unit - Middle East and South Asia, said: “Modern day accountants are aware that the profession’s focus is shifting from national to international standards. As the business world shrinks, this Diploma equips financial professionals with the necessary knowledge and skills to enable them to operate even more successfully on the international stage.

The benefits of the DipIFR are therefore clear for a company such as Genpact, which has a global outlook and reputation. By signing-up its staff to study for the DipIFR, Genpact is investing in its people. It is also ensuring that the company continues to play its important role in a competitive global marketplace.”

Get Through Guides’ CEO, Vandana Saxena Poria said, “It is wonderful to see global companies in India realising the importance of IFRS training. GTG’s training programme will ensure that Genpact staff will not only learn international accounting standards, but are able to competently and confidently apply the standards with the same skill level as a seasoned IFRS professional.”
ACCA has designed the programme to be flexible, so that the diploma can be completed in three to six months. The candidates enrolled in this programme are assessed by a single three hour examination. Any accounting practitioner or auditor, qualified in accordance with national accounting standards, is eligible to take the qualification.

For further detail of Genpact and GetThroughGuides, see:
http://www.imakenews.com/eletra/gow.cfm?z=accamember%2C174483%2Cb4pWgTbs%2C1404845%2Cb9kLq7P

Salaries Lift as Professional Shortages Bite

There is a consensus across the recruitment market that accountants need to develop additional skills to attract the highest possible salaries. Recent research from the UK's Association of Graduate Recruiters concluded that many job vacancies remain unfilled because employers look for stronger 'soft skills' from candidates, particularly in communications abilities.
Ian Graves, managing director for continental Europe of consultants Robert Half International, explained: “The traditional model of the accountant has changed. Today's accountants not only need financial acumen, but must also find a balance between leadership and managerial skills.”
A survey for Robert Half found that managers nominated communications skills (13%) and an open minded attitude (12%) as the most important attributes to develop. These were regarded as far more important than credit control management (named by 4%), risk management (2%) or corporate governance (1%).

Chris Cole, managing director of recruitment consultants Finance Professionals, said that several factors had driven up salaries. “There is a demographic shortage of candidates,” he argued, “with a shortage of candidates compared with peak years. There has been an increase in regulation – the Sarbanes-Oxley Act, MiFID, plus IFRS, and companies have become more aware of the need for stronger controls – and economic growth. That means a well qualified accountant with robust skills and who can work well with others can charge a premium.” Cole calculates that salaries have typically risen 10% to 20% in the last three years.

According to the annual survey of another consultancy, Robert Walters, “2006 [in London] has been characterised by a notable shortage of newly qualified accountants entering the job market.” Bonus packages have increased by 15% for newly qualifieds and by 50% for senior accountants. Employers have found the recruitment of internal auditors a particular problem, says Robert Walters.

Sanyo's Chairwoman Steps Down

Ms Nonaka, one of the most senior businesswomen in Japan and dubbed the country's answer to Carly Fiorina, was appointed chief executive and chairwoman in 2005 in a surprise move.
A former TV news anchor, Ms Nonaka had no hands-on experience in the electronics business or in corporate management.

Sanyo said last night she had resigned for "personal reasons" not directly related to internal disagreements over how the struggling electronics maker should handle its recent accounting problems.

The Securities and Exchange Surveillance Commission is probing whether the lossmaking company mis-stated its accounts.

Sanyo has said it could restate historical earnings for a three-year period before Ms Nonaka joined the company. "There have been internal debates as to how we should handle the problem, but her departure is not directly related to these debates," said a Sanyo spokesman at the time. Ms Nonaka could not be reached.

Sanyo revealed the investigation after local media reports suggested the group had exploited a grey area of Japanese accounting to conceal over $1bn of losses accrued in fiscal 2003.
Ms Nonaka's appointment came as a ground-breaking move in a male-dominated industry.
Observers questioned the appointment of an industry outsider with no management experience at a time when turning around the company's finances was critical.

Ms Nonaka soon made a splash with the public presentation of a bold restructuring programme to increase profitability, revive Sanyo's brand and overhaul its corporate culture of autonomous business units.

Critics applauded her verve and ambition, but held out for more detail. The strategy has yet to bear much fruit. The company's financial woes led to a Y300bn ($2.5bn) bail-out in January last year under which it issued preferred shares to Goldman Sachs, Daiwa Securities SMBC and Sumitomo Mitsui Financial Group.

The company is plagued by a falling competitiveness. Its main profit-earners, including digital cameras, mobile phones and batteries, have suffered sharp price falls and Sanyo has lost customers to rivals in each category.

During the accounting period under scrutiny, Sanyo accounts were audited by Chuo Aoyama, the accountancy firm punished in the wake of the Kanebo accountancy scandal and which handled the accounts of Nikko Cordial, the brokerage under fire for its accounting.

UK Budget 2007

good news for big business as small firms suffer

Chas Roy-Chowdhury, Head of Taxation at ACCA, said: “This is a very surprising Budget from a Chancellor who claims to be a friend of enterprise. It seems to be a case of robbing small business Peter to pay big business Paul.”
ACCA’s comments on specific measures outlined in the Budget Speech include:
Cutting the corporation tax rate, dropping from the current headline rate of 30% to 28% in April 2008 – should have gone further
The UK is now one of Europe’s most heavily taxed countries, so in the interest of global competitiveness, the move to reduce the headline rate of corporation tax by 2% is a step in the right direction. But companies will not see this benefit until 2009, when they pay the reduced rate of tax. However, future Chancellors should address the UK’s relatively poor record amongst many of its EU counterparts when it comes to innovative and business-friendly use of deductions and allowances in the corporation tax system.
Small company tax rate increasing from 20% to 22%
This is no encouragement for the small business sector, which represents 99% of businesses in the UK. While bigger companies will benefit from the corporation tax rate, small companies are facing an increase.
Roy-Chowdhury commented: “This decision flies in the face of the Chancellor’s previous aim to encourages more businesses to incorporate and shows an irrational hostility to micro enterprises.”
Lowering the basic rate of income tax from 22% to 20% in April 2008
Although a welcome move, by setting this rate, the Chancellor has, in effect, tied the hands of his immediate successor.
Aligning the top rate of Income Tax and National Insurance to £43,000
The Chancellor should have gone further and addressed the technical differences between PAYE and NIC rules, which cause SMEs headaches in payroll administration. The two accounting systems should be merged, particularly given the fact that with an imminent National Pensions Savings Scheme, SMEs face a three-tier payment system unless action is taken.
Capital allowances changes
Short-term ‘chopping and changing’ with allowances serves overall to increase complexity and red tape for businesses – they will now have to spend a lot of time finding out what allowances have been taken from them and what new ones they are eligible for – with the probable outcome that there will be little difference in their financial situation at the end of the process.
Failure to raise the stamp duty threshold
The Chancellor has again failed to raise the threshold and change the fundamentally illogical system whereby a £249,000 house purchase deal is subject to 1% tax, while a £250,000 purchase incurs a 3% charge on the whole price.
As well as an exemption limited to carbon zero new homes up to the value of £500,000, Brown should have used his last Budget to make a real difference and revamp the whole stamp duty system, making it more like the Income Tax system, where only the amount over each threshold band is subject to tax at that rate, not the full property price.
Increasing the inheritance tax threshold
House price inflation continues to run at a much higher level than the overall inflation rate and the inheritance tax threshold is failing to keep pace, which is seen by many as one of the greatest injustices in the tax system.
An impressive legacy for the Chancellor to leave would have been to extend to inheritance tax the exemption that applies currently to the individual’s main residence under capital gains tax. Making the main residence exempt from inheritance tax would remove one of the greatest inequities of the inheritance tax system and reduce the burden on ordinary taxpayers and their families.
Chas Roy-Chowdhury, Head of Taxation at ACCA, said: “The Chancellor’s moves on stamp duty and inheritance tax - while welcome - represent missed opportunities to fundamentally reform the significant injustices in both these important areas and for him to leave an impressive legacy.”
ISAs – could do more to encourage a savings culture
Roy-Chowdhury commented: “Increasing the cash ISA limit from £3,000 to £3,600 in April 2008 is a step in the right direction, but fails to send a convincing message that the Government backs savers. ISA limits should have, at the very least, been increasing with inflation since their introduction in 1999.”

ACCA Backs EU Review of Audit Liabilit

Any reform should not restrict the rights of shareholder bodies and other legitimate plaintiffs to bring proceedings against a negligent auditor,” added Davies. “It should, rather, aim to ensure that the auditor is not seen as the guarantor of shareholders’ losses, as has effectively been the case in the past. Any EU-wide reform should also be broadly-based and ensure a level playing field for the audits of quoted and unquoted companies alike.”

ACCA accepts the principle of proportionate liability, assuming that an auditor is guilty of negligence, that this causes an economic loss and that the courts uphold a liability responsibility upon the auditor. Proportionate liability is “fairer than a monetary cap”, says the ACCA submission.

Proportionate liability is also consistent with the reality that the auditor is never the only party involved in a financial mis-statement. It must always be remembered, says ACCA, that “the management of the audited company has its own separate legal responsibilities in relation to the preparation of the accounts” and that, inevitably, “the management will be at fault” for any defect in financial statements at least as much as the auditor, if not more so.

“For auditors to be liable not only for their own mistakes but those of others is, in our view, unsustainable,” the submission emphasises. “It has led to the creation of a situation whereby auditors are sued by plaintiffs not because they are the party that is considered to be the party most at fault but because, via the insurance cover that professional rules require them to hold, they are the party that is most likely to be able to pay.” The adoption of proportional liability would not prevent innocent plaintiffs pursuing legal action against others who might also have been negligent and partially responsible for a loss, points out ACCA.

Global Delivery, Global Opportunity

ACCA is now the international market leader by size in 47 markets and, based on independent surveys in 15 markets, it has increased its reputation among employers of accountants over the last five years. ACCA achieved its growth targets in 2006, with a 13.8% increase in total student numbers and 5.3% increase in total members. All these achievements make ACCA the world’s largest and fastest-growing global professional accountancy body.
ACCA has achieved this position by focusing on global delivery and global opportunity. ACCA’s global infrastructure means that exams and support are delivered at local level, together with reputation and influence building, directly benefiting stakeholders wherever they are based - or plan to move to in pursuit of new career opportunities. More importantly, ACCA has developed according to a unique set of values which set it apart in the accountancy profession - in particular, by championing opportunity, diversity and integrity.

Highlights of 2006

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In 2006, ACCA expanded its global accountancy partnerships. New mutual recognition agreements (MRAs) were agreed in Canada and Hong Kong with the Certified General Accountants Association of Canada (CGA-Canada) and the Hong Kong Institute of Certified Public Accountants (HKICPA). Of particular significance is the range of partnerships ACCA now enjoys, with agreements relating to joint qualifications, regulation, continuing professional development, technical research and the promotion of further qualifications, such as the Diploma in International Financial Reporting. New contracts obtained to support regional and national bodies in delivering quality assurance and audit monitoring have helped to position ACCA as a global leader in audit regulation: ACCA now works with the East, Central and Southern African Federation of Accountants (ECSAFA), the Institute of Certified Public Accountants of Cyprus (ICPAC) and the Malta Institute of Accountants (MIA).

ACCA redesigned and launched its professional qualification, with a greater emphasis on professionalism and ethics at its core, increased flexibility with respect to specialist options, and a new framework for practical experience requirements, based on competences and the achievement of performance objectives.

ACCA's platinum sponsorship of the World Congress of Accountants in Istanbul, organised by the Turkish accountancy profession and the International Federation of Accountants, demonstrated that ACCA is a leading voice in the global accountancy profession.

A range of new partnerships with professional bodies and academic institutions (including e-learning) have extended the opportunities for members to obtain further professional development to acquire specialist skills or qualifications in broader strategy. With 78,900 members having commenced their CPD requirements under ACCA Realise in 2005 and 2006, attendance at ACCA-organised CPD events has increased to over 88,000. ACCA was pleased to announce a global partnership with the Securities and Investment Institute, providing members with access to additional qualifications and services in the financial services sector.

ACCA provided significant input into legislative developments in many countries, especially in relation to accounting standard interpretations in the UK.
Work continued to ensure ACCA is an efficient and effective organisation, through a restructuring of the customer services operation, investment in global technology infrastructure, and realised savings of £800,000 through outsourcing print and distribution of printed materials in the UK.

For further details visit:
http://www.imakenews.com/eletra/gow.cfm?z=accamember%2C168794%2Cb4pWgTbs%2C1296631%2Cb99NmjP

Boost your ethical fitness

When making your annual CPD return, you are required to complete a declaration stating ‘I have maintained and, where appropriate, developed my competence in relation to professional ethics’. A commitment to an ethical approach is not just a requirement of ACCA Realise. Good conduct is good for business too –making the right decision can be beneficial to you, your clients and colleagues, and your organisation.
But where do you source the support you need to make this declaration?
ACCA’s global website – accaglobal.com – has an entire section dedicated to professional ethics. Designed specifically for ACCA members, the online resource provides guidance and advice on how to approach and resolve any ethical challenges you may face in the workplace.
ACCA’s ethics resource offers a broad range of learning opportunities and activities, including:
online courses and podcasts – offering learning beyond the constraints of time and place
case studies - descriptions of ethical events at a range of organisations, featuring questions for discussion
ACCA’s perspective on corporate social responsibility ethics in the news useful articles about ethics.
To boost your ethical fitness, and earn CPD units, visit http://www.imakenews.com/eletra/gow.cfm?z=accamember%2C168794%2Cb4pWgTbs%2C1296643%2Cb99NmjP

IIA Membership for ACCA Members

ACCA members will be able to enjoy both local and IIA Global benefits including a discount on their first year's membership fee if they reside in the following areas: UK, Ireland, US, Canada, Caribbean and Malaysia. Members residing outside these locations may be eligible to join IIA Affiliates locally orjoin IIA Global if there is not an IIA Affiliate in their region.

In addition, ACCA members will have a unique opportunity to gain certification during 2007. Members based in the UK and Ireland will be eligible to gain the Advanced Diploma in Internal Auditing and Management through a special fast-track exemption route and examinations that will be held in June and November 2007. Members based elsewhere will be eligible to gain the Certified Internal Auditor (CIA) qualification on the basis of successful completion of a challenge exam which will be held in November 2007.

Clare Minchington, ACCA's managing director, education, learning and development, said: “This is an exciting development which will enable ACCA members to register as professional internal auditors with The IIA under one membership model. The IIA and ACCA are truly global organisations, with synergies which make is ideally suited to a joint arrangement such as this. The benefits are clear for ACCA members, and we look forward to working with The IIA in the future.”

Jo-El La Borde, director of membership from The IIA, said: “This new model offers a streamlined approach for IIA enrolment on a global basis delivering robust opportunities for members to join IIA affiliate networks or the option to join IIA Global directly. The IIA looks forward to continuing this relationship as we together enhance the profession of internal audit.”
For further information, click on the link below

IIA Membership for ACCA Members

New York could Lose Role as Financial Capital

London is set to overtake New York, because of the US vulnerability to litigation and heavy regulation, according to Bloomberg – backed by New York Governor Eliot Spitzer and Senator Charles Schumer.
The report concludes that today's trends, unchecked, would lead to the loss of between $15bn and $30bn in financial services revenues a year by 2011, with related losses of between 30,000 and 60,000 jobs.
As well as suffering from the impact of Sarbanes-Oxley, the report suggests that the United States' market advantage has been eroded by improved overseas markets and more sophisticated technology that have “virtually eliminated” barriers to the international flow of capital. Meanwhile, new barriers to the US competitive position have emerged and are “self imposed”, says the report. These include visa restrictions on overseas workers, preventing the recruitment and retention of skilled staff.
Recommendations in the report concentrate on improving the legal and regulatory environment, with particular attention to accounting rules. IFRS should be recognised for listing purposes without the need for reconciliation, with faster convergence of accounting and auditing standards, says the report. Measures should also be taken to improve the authority of the Securities and Exchange Commission and more should be done to attract international capital and resolve long-term structural issues, with a public private partnership established to further promote New York as a financial services centre.
"Our capital markets and financial services firms will only enjoy continuing growth - growth that our city expects, needs and demands - if we take seriously the challenges from rapidly-expanding competitors in Europe and Asia," said Bloomberg – who is widely expected to run a campaign for the Republican nomination for President.
"The financial markets are a cornerstone of New York State's economy yet, as the study illustrates, we are in danger of losing our pre-eminence as the financial center of the world," said Governor Spitzer, a Democrat. "We must take these recommendations seriously so as to support an economic climate ripe for financial services while continuing efforts to safeguard the market for investors.”

ACCA Welcomes Commission's Move on Auditor Liability

Roger Adams, Executive Director - Technical, said: "ACCA has consistently made the case for reform of the liability laws to prevent audit firms being potentially wiped out due to a catastrophic claim, which under the concept of joint and several liability they might have to pay the whole amount of, even if others were mostly to blame for a company collapse.

"We disagree strongly with those who say that it is only the threat of litigation that keeps auditors on their toes. Restricting liability will not reduce audit quality - on the contrary, it will in the long-term improve it by ensuring that audit firms do not drop out of the market due to unacceptable risk."

He added: "Ideally, our preferred option from the Commission's alternatives, would be a system of proportionate liability. Contracts entered into under such a system would establish a fairer basis for determining an auditor's liability for negligence since the new arrangements would implicitly provide for the responsibility of all parties involved in causing financial loss to shareholders to be taken into account by the courts. It would also level the global playing field for audit as firms do not have to compete on the level of liability cap.

"It must be remembered that the whole audit process exists to protect the interests of the company's shareholders. In view of this, it is vital that any initiative which would affect shareholders' rights of redress where they have suffered loss be made subject to their explicit approval. It is essential that the two sides enter into a liability limitation agreement freely and without undue influence from either side."

ACCA Responds to the Stern report

While Sir Nicholas Stern's report shows "what counts" for the global economy, accountants must rise to the challenge of "who counts" the ongoing costs of environmental degradation.

Blewitt commented: 'The contribution of the accountancy profession to date has been significant, but more must be done. Despite the government's unfortunate rejection of the Operating & Financial Review, a reasonably robust model for the Business Review still exists and can be used for mandatory disclosure of carbon emissions.'

The letter also includes four of practical suggestions for the future:
Greater emphasis on the true sustainability of reported profit levels will gain more general market acceptance if accountants can improve our ability to quantify, internalise and report on the financial consequences of social and environmental impacts

While ACCA can advise on how an enhanced range of green taxes can be formulated, transparency on where the money goes must be integral to this approach. People need to be reassured that their green taxes are ameliorating "catastrophic climate change"

Formal targets can be set for "greening" the supply chains of public sector organisations, building on the work already done by the government itself in this area

Finally, the government must propose robust models for personal carbon trading markets, so as to avoid any repeat of the privatisation voucher-type scandals seen after the collapse of the Soviet Union.

Student Engage 2007

Student Engage - your opportunity to ask questions about the new ACCA Qualification.



January 2007 marked the introduction of the new ACCA Qualification. Clare Minchington, managing director - education, learning and development and Stephen Heathcote, director of learning and development, will be available to answer your questions about the qualification in a live broadcast via ACCA 's website on 11 April 2007 at 12.00 GMT (13.00 BST).

student engage will provide you with the opportunity to put forward your questions on any aspect of the new ACCA Qualification - from the structure of the syllabus or practical experience requirements, to progression rules and conversion arrangements.

Do you have any query regarding the New ACCA qualification, submit it on the Student Engage Site

New postgraduate qualification in Public Financial Management

New postgraduate qualification in Public Financial Management is now available.

The agreement is part of ACCA’s strategy to link with internationally-respected universities and provide ACCA members with opportunities to undertake relevant postgraduate training as part of ACCA's commitment to CPD. The link with SOAS adds to ACCA’s existing links with Exeter University, Oxford Brookes University, Saïd Business School at Oxford University, and the University of Cambridge.
The Postgraduate Diploma in Public Financial Management is designed to enable an individual to advise on and make financial decisions and policy choices in relation to the financing and management of public infrastructure and services. It provides invaluable preparation for high-achieving employees in governments, public services, international organisations and NGOs.

The programme is endorsed by ACCA and will be attractive to members and affiliates who wish to gain further education in public finance. All ACCA members and affiliates are eligible to take the Diploma and will receive an exclusive discount of over 5%.

For further information on this qualification, please visit

http://www.cefims.ac.uk/

Cambridge & ACCA Test Financial English

A new financial English exam is set to test the readiness of accountants for working on the global stage.

University of Cambridge ESOL Examinations (English for Speakers of Other Languages) and ACCA have combined their areas of expertise to develop the International Certificate in Financial English (Cambridge ICFE).

Michael Milanovic, chief executive of Cambridge ESOL said: ‘People working in an international finance context need high levels of English language and an understanding of the kind of language used in a demanding, fast-moving profession. This unique exam will help the ambitious to demonstrate their skills and suitability for a successful career in international finance. This initiative with ACCA is part of a broader partnership in a number of areas relating to financial English learning and development.

‘Cambridge ESOL develops language assessment suited to people’s real needs. ICFE is another example of our commitment to creating tailored assessment for different business and professional environments, the different ages of test takers and to meet other specific needs.’

Allen Blewitt, Chief Executive of ACCA, the world’s largest professional international accountancy body, said: “Developments such as the advent of International Financial Reporting Standards together with the ever-increasing globalisation of finance and business means that accountancy is rapidly becoming one global profession. ACCA has always prided itself on providing a quality international qualification which is the same high standard throughout the world. Through this, we give opportunities for young people of application and ability whatever their background.


For more information check the following link

http://www.financialenglishtest.org/

15 Additional Minutes for ACCA Exams

For all three hour examination papers, ACCA has introduced 15 minutes reading and planning time. This additional time is allowed at the beginning of each three-hour examination to allow candidates to read the questions and to begin planning their answers before they start writing in their answer books. This time should be used to ensure that all the information and exam requirements are properly read and understood.

During reading and planning time candidates may only annotate their question paper. They may not write anything in their answer booklets until told to do so by the invigilator.