PQ magazine July 2020 incorporating NQ magazine

AATs get their assessment slots booked up

Many ‘excited’ AAT students have been busy
booking their assessments as centres open
from Monday 29 June. This is despite the
fact that AAT originally said no test centres
would be taking bookings until 22 June.
While smaller centres seemed to have lots
of ‘availability’ for bookings, some of the
bigger players seem to be acting more
cautiously. PQs knows of students who have
booked in Manchester (Pitman), Stantfords
Training in Birmingham, First Intuition in
Maidstone and at the Learning Academy in
Milton Keynes.
And Kaplan said it will be re-opening
assessment venues in a two-phased approach.
Phase 1 will see roughly half of venues open
in early July. This will allow Kaplan students
to sit their synoptic assessment in line with
the revised window. Phase 2 will see Kaplan
open all assessment venues in August.
Details of which centres will be in each phase
are now up on its website.
As of now, BPP says its centres are closed
until the end of August, but it is reviewing its
plans and will provide further information
shortly.
First Intuition said it is contacting students
and employers to understand their
preferences and said it will base its decision
to re-open local centres on student feedback.

PQs’ WELLBEING
TAKES NOSEDIVE
PQs’ wellbeing and mental health has
‘taken a tumble’ during the lockdown,
according to the latest study from top
recruitment firm Hays.
The Hays Wellbeing Matters report found just
33% of PQs rated their wellbeing as positive
since the Covid-19 crisis hit, down from a 62%
positive rating pre-lockdown. Worryingly, those
who saw their wellbeing as ‘negative’ has risen
from 6% to 27%. Clearly, working remotely or
being furloughed is taking its toll on PQs. Hays
said accountancy is still predominately an office,
desk-based job, so shifting to working for home
is a huge adjustment.
So what are the things getting PQs down? The
biggest concern is the lack of social interaction
(cited by 27% of you), followed by feelings of
isolation and loneliness (13%). An increase in
workload isn’t helping one in 10 (11%), and its
all just boring for another 10%.
Since lockdown began getting the work-life Many employers also don’t seem to be provided any wellbeing support during
balance right has become more important to two stepping up to the mark to help, either. While lockdown. However, those who are supplying
in five (43%) PQs. Despite this, over half rate nearly three-quarters of PQs say their employer support are doing it really well. Some 12% are
their work-life balance between average and has a responsibility to help with their wellbeing, offering counselling, and the same percentage
poor. some 53% revealed their employer has not Continued on page 4
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IN THIS ISSUE
News
04ACCA fast track Association
launches degree scheme with
University of Dundee; plus the
Editor’s comment
05CIMA AGM After 101 years,
institute holds first virtual AGM
p5
06IFRS change Pandemic
prompts amendment to IFRS 16
Leases
08ICAEW exams Students now
able to book their exams online
09AAT exams Remote sittings in
place by August, association
confirms
10CIMA initiative OT exams sat
in students’ homes for the first
time. So how did it go?
11ACCA exams Yes, you will be
able to use your own calculator!
12Tech news Indonesia to tax the
digital giants
Features, etc
14Black Lives Matter We asked
the professional accountancy
bodies what they are doing to
level the playing field
16Study advice ‘Never put off
until tomorrow what you can do
today’. Sound advice from an
ACCA mentor who knows…
p23
To subscribe go to www.pqmagazine.com
17Opinion ACCA’s Alan Hatfield
believes that ethics is now at the
heart of the qualification
18A post Covid-19 world The
pandemic has hastened the
uptake of edtech – and it looks
like it’s here to stay
19Profile Jazz Gandhum looks
back on a successful (getting on
for) 10 years at e-Careers
20Analysis Regular columnist
Professor Prem Sikka explodes
the myth of shareholder
ownership
22Back to Basics Tom Clendon
explains double entry
bookkeeping – and has made a
video to help you understand
the nuances. What a guy!
23A bookkeeper’s journey
Joanne Crompton describes
how she took the fast train to
getting qualified
24ACCA option papers ‘Your
Honour…’ Sunil Bhandari puts
the case for Advanced Financial
Management
27CIMA success Meet Daniel
Dudley, who completed his
qualification in just three years.
So just how did he do that?
contents PQ
July 2020
p14
28ACCA syllabus changes We which relies heavily on the
explain the changes that you concept of marginal costing
really need to know about 40CIMA spotlight Exam chief
29ACCA versus CIMA We look Stephen Flatman offers some
at the (many) merits of both advice on how to sit – and pass
qualifications – but which is the – your CIMA exams at home
right one for you? 41Call of duty So what are the
legal duties company directors
30Distance learning Andrew
Taras describes his AAT journey have? The Institute of Director’s
via distance learning Roger Barker explains all
43Careers Life at e-Careers; meet
p33 the new CIMA President; and
our Book Club Review
44Fun stuff – and our giveaways
The columnists
Robert Bruce The time is right for
meaningful change 6
Prem Sikka It’s one rule for the
rich, another for the poor 8
Zoe Robinson A blended approach
to learning is the way forward 10
Mike Day E-invoicing is the way
ahead – but it needs buy-in from
the top 12
33Becky’s ACCA tips Recently
qualified ACCA Becky
Hennessey has some top tips on p41
how to succeed
34The true cost of football
Kieran Maguire’s offers a
fascinating insight into the
(sometimes scary) world of
football finance. And test
yourself in our great quiz, too
37Wellbeing Lockdown has not
been good for the mental
wellbeing of many PQs. Hays’
latest report makes sobering
reading
38CIPFA spotlight How you can
develop your skills and become
a finance leader of tomorrow
39Finding the edge Philip Dunn
looks at break-even analysis,
PQ news
GRAHAM
HAMBLY
PQ – always
first with the
news
First things first, I hope you are all
looking after yourselves. These are
strange times, and it is worrying to
see that many PQs’ wellbeing has
taken a tumble during the pandemic.
If you are not getting help from your
employer then do seek help from your
accountancy body. ACCA and CIPFA,
in particular, have been working hard
to ensure their PQs are better
supported. If you go online there are
lots of resources and support there.
With the move to remote exams
becoming relentless it is interesting to
discover that the old-style pen and
paper are not dead (see opposite).
ICAS PQs sitting their TPS exams have
to photograph what they have written
and upload it for marking. Meanwhile,
AAT has reopened bookings for
assessments at centres in the UK
(from 29 June) and students have
been busy booking their slots.
At the ACCA the July remote pilot
exams for the Applied Skills, AFM and
SBL are nearly upon us. One big
concession won for students by tutors
is the fact that they can use their own
calculators. Well done guys.
I wanted to give a big shout-out to
Tom Clendon, who has helped to
launch our Back to Basics video
series. He looks at Double Entry
Bookkeeping and has an
accompanying article on page 22.
#BlackLivesMatter
Just to say you won’t find a letters
page in this issue. Instead, we asked
the accountancy bodies to tell us how
events following the death of George
Floyd is shaping their policies. See
what they have to say on page 14.
Graham Hambly is Editor and
Publisher of PQ magazine
and NQ magazine
PQs’ wellbeing takes a nosedive
Continued from page 1
have things like an online doctor.
In another survey from the
ACCA and the Corporate Finance
Network, accountants have
revealed an alarming one in 10 of
their SME clients have shared the
fact that they’ve had suicidal
thoughts. Asked about their
clients’ mental health, some 89%
of accountants said their clients
have reported feeling more
stressed than usual and not
sleeping, with 78% stating a
4 PQ Magazine July 2020
ACCA and University of Dundee
have joined forces to offer the
quickest route to passing degree
and accountancy exams in UK!
The pair are set to launch a
Master’s degree with embedded
professional qualifications, which
can be completed in two years –
that’s quicker than any other
current offers.
At present students studying in
Scotland typically take a four-year
Bachelor’s degree course to gain
their ACCA exemptions, with many
then choosing a one-year Master’s
to obtain further knowledge.
The bespoke, integrated degree
at the University of Dundee, will
allow them to achieve a Bachelor’s
degree, plus a Master’s degree in
just three years. It will also allow
students to gain exemption from
ACCA’s nine knowledge and skills
papers, preparing them for further
study of ACCA’s professional
papers.
The MAcc Accounting Integrated
Exams with a difference
While the other accountancy
bodies go ‘hell for leather’ to
introduce remote exam on
computer, there is one
group of PQs where having
enough black ink in your
pen and white A4 paper is
still the key – ICAS’ TPS
final exam and mock
candidates.
These June exam sitters
must write their exams on
blank, white A4 paper,
Covid-19 means AQ2021 becomes AQ2022
AAT’s new syllabus, AQ2021, will no longer be starting
in September. The new syllabus has become another
casualty of the pandemic.
The AAT has said it will now begin testing the new
syllabus from February 2022, giving students more
time to pass with the old one. In fact, students will
have until the end of February 2023 to complete a
worsening mental health
condition, and 56% claiming they
are “unable to cope”.
The health tracker survey found
SMEs’ concerns about accessing
finance during lockdown have also
increased, with 23% saying they
won’t be able to access cash to
last them two weeks or more of
lockdown, compared with 12%
just a week before. Perceptions
about trading conditions have also
altered, with a mere 16% saying
they think they will be trading
ACCA fast track with
University of Dundee
Masters will also cost students less intensively, with 60 hours of
in tuition fees (for students outside teaching per five-week module, and
of Scotland) due to its reduced six modules to complete in Year 1.
number of years’ study. Dundee will take the first
Students will study for about 45 students for this course in January
weeks a year, rather than the 2021 and there is expected to be
typical figure of around 30 weeks. healthy competition for the fast-
They will also study more track places.
At the end of the exam students
will then have to photograph each
page and upload them onto
which is Turnitin, a cloud-based software
supplied by system. PQs can use a scanner if
ICAS. they have one, but they need to
Meanwhile, send their pages as one PDF.
the use of No dispensation will be given for
laptops and a candidate who does not have or
other devices are runs out of white A4 paper!
not permitted ICAS TPE remote exams are all
under any sat at a laptop. The institute has
circumstances, also announced that the four-sitting
other than to rule for TC, TPS and TPE exams
view the exam has been ‘temporarily amended’ for
paper. students during the pandemic.
level before switching onto AQ2022. That’s nearly three
years. AAT said that it was reacting to feedback from
training providers to allow students more time to
progress under AQ2016, and to allow it more time to
plan for the new qualification.
On hearing the news many students seemed happy,
and it was thumbs-up all around on Facebook groups.
normally in the near future,
compared with 21% a week ago.
Head of ACCA UK Claire
Bennison said: “As the weeks
pass, the impact on lives is
becoming clearer. As more small
business owners decide to
liquidate we are also seeing a
worsening picture of mental
health in the small business
community. Having someone to
speak to at this time is vital, and
we know some hard conversations
are being had, and will continue
for months to come.”
• More on the Hays’ Wellbeing
Matters survey on page 37.

In brief
Free resit offer from CIMA
CIMA is offering a free resit
to sitters who are unsuccessful in
their exam in June and July.
Unsuccessful candidates will
receive an email from CIMA
confirming the exam credit has
been added to their ‘My CIMA’
account. They will then be able to
schedule a resit in the normal way
– for free. The offer is only valid
for the operational, management
and strategic OT tests. Students
must have attempted and failed
between 1 June and 31 July
2020. No-shows are excluded
from the offer.
More Africa cancellations
ACCA has emailed some of
its students in Africa to tell them
they won’t be sitting exams in
July. The list of countries where
exams will no longer take place
includes Cameroon, Ghana,
Kenya, Malawi, Mozambique,
Namibia, Nigeria, Rwanda,
Sudan, Tanzania, Uganda, and
Zambia. ACCA explained: “This
carefully considered decision took
into account a number of factors,
including health concerns for our
students and staff.”
PQ Magazine July 2020
CIMA AGM goes remote
For the first time in its
101 year history CIMA
held its 2020 annual
general meeting
remotely. It went live at
11.30am on 3 June BST.
During the meeting
Nick Jackson was
elected President, and
you can read a summary
of his inaugural speech
on page 43.
Members voted on
annual membership fees, which
were held at £313 for fellows and
£297 for associates. The
ACCA student fights back against the cheats
A student in China has reported a
fellow exam candidate who they
saw taking pictures of the exam
questions on the computer screen.
They told ACCA: “I think this
behaviour has seriously violated the
exam discipline and would create
unfairness.” Worryingly, the student
said this was not the first time they
have seen “such a phenomenon”,
and is calling on ACCA to “pay
more attention to resolved this
application fee will be
£260 for fellows and
£165 for associates.
There were no
special resolutions.
CIMA’s annual
report is also out.
Accounts to the year
end 31 December
2019 show
membership grew to
112,617 (up 2,124).
The total student
population was 106,364.
Income for the year was
£60,587,000 and expenditure
serious problem”. The student even
found an exchange where the
student had posted images of their
CBE questions, and then asked for
assistance on a WeChat group.
ACCA was informed, and it tracked
the cheating to one student,
Chenhui Xu, who has subsequently
been removed from the student
register and ordered to pay costs of
£5,680.
In another case, heard on a
news PQ
£60,382,000, giving a total
operation gain of £246,000.
CIMA paid auditors £476,00 for
their work in 2019, that’s up some
£101,000 on the previous year.
Which seems a lot.
The report also shows that CIMA
has a 10-year lease on its HQ at
the Helicon in London, until 2024.
One commentator told PQ
magazine that it has £22,920,000
outstanding commitments. With the
move to more working from home
and the global nature of CIMA he
wondered if it needed such a big
space moving forward.
remote link, Hanxue Zheng was
removed from the student
registered and fined £5,000 after
she was found in possession of
unauthorised materials in the form
of notes at her exam desk.
Sichuang Wang also took
unauthorised handwritten notes to
his exam sitting for FM. He was
removed from the student register
and has to pay a fine and costs of
£2,750.
5
PQ news
ROBERT
BRUCE
The time is
right for
meaninful
change
We live in difficult, chaotic times. We
were already facing accelerating
climate change. Then came the
pandemic, bringing death and
economic collapse, and then the
death of George Floyd that crystallised
our underlying inequalities.
Out of this chaos comes the chance
for real change. As Peter Bakker, the
President of the World Business
Council for Sustainable Development,
put it: “We simply don't have any
excuse left not to build back better
and implement deep systemic change,
if we ever want all people to live well
within planetary boundaries.” That’s
the sort of thing that people in such
organisations are always saying. But
such has been the upheaval you
would not bet against change coming
about with urgency and speed.
The influential Ceres Accelerator
for Sustainable Capital Markets also
came up with a blockbuster report in
June. ‘Addressing Climate as a
Systemic Risk’ is a call to action for
US financial regulators. “The
magnitude of a crisis is determined
not just by the impact of precipitating
events, but by the fragility of the
system it attacks,” says its
introduction. “The world has been
forced into a recalibration of values.”
Out of this change can come. Led
by the US regulatory system, it could
be locked into place. As the report
says: “There will never be vaccines
developed to protect against climate
risk. But the good news is: we already
have all the tools and knowledge in
the financial markets to take sound
preventative action.” There could be a
silver lining to all this chaos.
Robert Bruce is an
award-winning writer on
accountancy for The Times
In brief
Accountex rescheduled
Due to the ongoing pandemic
Accountex, Europe’s biggest
accountancy and finance
conference and expo, has now
been postponed until 2021, The
show will return to ExCel London
on 12-13 May 2021. Organisers
Diversified Communications UK
had shifted the Spring event to
mid-November, but have now
taken the decision to move it all to
2021. It said: “The decision has
been widely supported by key
exhibitors and association
6 PQ Magazine July 2020
Lease standard amended
The International Accounting
Standards Board has issued an
amendment to IFRS 16 Leases to
make it easier for lessees to
account for Covid-19-related rent
concessions, such as rent holidays
and temporary rent reductions.
The amendment exempts lessees
from having to consider individual
lease contracts to determine
whether rent concessions occurring
as a direct consequence of the
pandemic are lease modifications.
And it allows lessees to account for
such rent concessions as if they
were not lease modifications. It
applies to Covid-19-related rent
concessions that reduce lease
payments due on or before 30
June 2021.
IFRS 16 specifies how lessees
Changes to ACCA syllabus
ACCA PQs sitting exams this
September need to be on top of
new syllabus changes.
For PM sitters, big data and data
analytics have been added.
Performance data is another
addition, along with a new section
on the risks around IS and data
Former PQ spends stolen £58k on cars and booze
A former trainee accountant, Jake
Currie, who was ‘left to his own
devices’, managed to defraud his
company out of £58,000. He used
the money to buy a second-hand
BMW, pay his Stockport mortgage –
and a lot of booze!
Working for NUCO Travel, Currie
made numerous payments into his
own account over a six-month
period. He then decided to go on
‘sick leave’, before announcing he
was taking a holiday to Canada.
The firm decided it was time to
partners”. Accountex Summit
North will now take place on 21
September 2021.
Studying in a bubble
University graduates will have
to study and live with the people on
Hans
Hoogervorst
should account for changes in
lease payments, including
concessions. However, applying
those requirements to a potentially
large volume of Covid-19-related
rent concessions could be
practically difficult, especially in the
light of the many challenges
stakeholders face during the
pandemic. This optional exemption
analytics. That’s the only real
changes at the Applied Skills level.
There are more changes at the
Strategic Professional level. The two
key papers affected at APM and
SBR, although there has been
some minor tinkering on AAA.
Process automation and the
part company, and its new trainee
accountant quickly noticed the
discrepancies in payments.
After pleading guilty to one count
of fraud and two
counts of transferring
criminal property the
26-year old was
sentenced to two years
in prison suspended
for two years. He must
also undertake 200
hours of unpaid work.
Judge Bernadette Baxter said:
their courses as universities
redesign campuses for new social
distancing rules. Placing students
in smaller course-mate ‘bubbles’
will limit mixing, minimise the risk
of Covid-19 outbreaks on campus,
and help universities reopen in the
Autumn. There will also be limits
on lecture sizes. Freshers Week will
also be very different! Many are
moving online, and there will be
strict rules on the size of parties.
Time to volunteer
Accountant Sam Tasker-
gives timely relief to lessees and
enables them to continue providing
information about their leases that
is useful to investors. The
amendment does not affect lessors.
The amendment was effective 1
June 2020, and to ensure the relief
is available when needed most
lessees can apply the amendment
immediately in any financial
statements – interim or annual –
not yet authorised for issue.
Hans Hoogervorst, chair of the
International Accounting Standards
Board, said: “The amendment is
designed to make it easier for
lessees, especially those with a lot
of lease contracts, to account for
Covid-19-related rent concessions
while still providing useful
information for investors.”
Internet of Things have been added
to the syllabus, as has AI and the
use of presentation tools.
For SBR, the examiners want you
to be able to discuss the impact of
current reporting issues in
corporate reporting. We are talking
cryptocurrency and environmental
issues here.
• See page 28 for our full analysis
of the changes come September.
“You made 22 transactions over a
six-month period of £58,000. You
did it in a state of mind where you
felt sorry for yourself. You were
spending the money on
frivolous things, £9,000 on a
mortgage and £10,000
payment towards a car. You
have then drank and frittered
away the rest of the money. I
accept your behaviour was
out of character for you.”
Currie, pictured, is now working
as a recruitment consultant.
Grindley hit the papers recently for
all the right reasons. After he was
furloughed two months ago he
wanted to be a bit more active, so
co-founded Furlonteer. The non-
profit website (furlonteer.com)
connects charities and good
causes with skilled willing people
during the lockdown. Tasker-
Grindley told the Sunday Times: “I
don’t want to look back on this
time and think I wasted it.” So far
more than 5,000 people have
signed up to do a minimum of
three hours a week.
PQ news
PREM
SIKKA
It’s one rule
for the rich
countries
and another
for the poor
France, Denmark, Poland, Belgium,
Wales and Scotland say that they will
deny government-backed coronavirus
bailouts to businesses linked to
offshore tax havens. Sound good, but
there is more to it. What do they mean
by a ‘tax haven’? Tax havens are
associated with secrecy, low/no tax
rates, poor enforcement and
cooperation with other countries. Who
gets blacklisted depends on politics.
The Financial Secrecy Index
developed by the Tax Justice Network
lists countries facilitating secrecy and
increased possibilities of tax
avoidance and illicit financial flows.
Its top two offenders are Cayman
Islands and the US. Other offenders
are Switzerland, Hong Kong, Japan,
Singapore, Luxembourg, Netherlands,
British Virgin Islands, UAE, Guernsey
and yes – the UK. No one is proposing
sanctions against them because they
wield considerable diplomatic, military
and economic power.
The second list produced by the EU
names 12 jurisdictions including the
Cayman Islands, Fiji, Guam, Oman,
Panama, Samoa and the Seychelles.
These countries are small and lack
clout. The EU doesn’t mention any
European tax havens even though
Luxembourg, Monaco, Ireland and
Switzerland have facilitated tax
avoidance. The UK got a slap on the
wrists from the EU for giving illegal
state-aid to firms through its taxation
system, but is not on the blacklist.
Some countries are showing moral
indignation against small jurisdictions
and doing nothing against the biggest
players in tax avoidance.
Prem Sikka is Professor of
Accounting at the University
of Sheffield
Taxwatch
‘Scrap marriage allowance’
AAT has reiterated its call for
the removal of the Marriage
Allowance, in a new response to
the Office of Tax Simplification’s
call for evidence on ‘claims and
election reviews’. It first made this
proposal in 2018 and continues to
believe that scrapping this relief
would be in the best interests of
the taxpayer and HMRC. AAT told
the OTS that the relief cost
taxpayers more than £500m a year,
is taken up by less than half of
those who are eligible, and benefits
8 PQ Magazine July 2020
ACA advanced exam bookings open
ICAEW students are now able to
book for their advanced level
exams. The online system is now
open – from Monday 15 June
until Friday 17 July.
The exams, which normally
take place in July, are
planned to run on 24, 25 and
26 August. The results will be
released on Friday 2 October.
The Case Study advance
information was available
from 9 June, via the
resources website.
The ICAEW reminds
students that it has
temporarily suspended the
ACA assessment regulation
requiring all other ACA exams
to have been passed or
attempted before the case
study exam may be
attempted.
The ICAEW also explained 2020
exams and learning materials were
The current crisis has made young
UK audiences more discerning and
questioning of what content they
see and read through all media
channels, a new EY survey
reveals.
Nearly one-fifth (17%) of
18-24 year olds say they
trust online news sources
less today than before the
crisis. This is, says EY, not
an insignificant number – it is
FRC chairman to step down
The Financial Reporting Council’s
chair, Simon Dingemans, has
stepped down barely nine
months into the job.
Former GlaxoSmithKline
finance boss Dingemans was
appointed last July to oversee its
transformation into the Audit,
Reporting and Governance
the married couple by a relatively
small sum of £250. It said:
“Removing the allowance is not
going to influence an individual’s
decision to get married – and it is
in no way an indication as to
whether or not a political party
supports the concept of marriage.”
PapSaudi Arabia triples VAT
Saudi Arabia has increased
VAT threefold as it steps up support
of its economy. The cost of living
allowance will also be suspended,
as the Kingdom’s oil income has
prepared before the coronavirus
pandemic began, and when you sit
your exam in 2020 they will not
have been amended to reflect the
economic, business or financial
impact of the pandemic. However,
Trust in the media falling
in fact the highest among any
demographic and almost
twice those aged over 55
(9%).
The same trust issue
manifests itself
explicitly on social
media. Of all UK
households, 17% say they
Authority (ARGA).
As chair of the
FRC is a part-time
position it was
agreed as part of
his appointment
process that he
could take on
additional roles,
plummeted. VAT will increase from
5% to 15% as of 1 July, and the
allowance was suspended from
1 June. The allowance of 1,000
riyal a month to state employees
was introduced in 2018.
Gambling firms win £1bn
Betting firms have won a
multi-billion-pound tax rebate over
slot machines. Betfred and Rank
Group will now receive more than
£1 billion plus interest, following a
court ruling that HMRC had
wrongly charged them VAT on their
the exams have been reviewed to
ensure that they are still a viable,
objective test of the competencies
and skills required for your
qualification.
It said: “Some exam
question scenarios may
relate to an industry, sector
or business on which the
Coronavirus has had an
impact. Where analysis of
that scenario is required, it
may be relevant to
mention briefly in your
answer the implications of
coronavirus.
“However, you should
not dedicate substantial
time or focus on these
implications. You should
focus on answering the
question appropriately,
using the technical knowledge and
skills as set out in the ICAEW
learning materials.”
now trust social media less than
they did before the coronavirus
outbreak.
Yet this number is highest in the
younger age group at 24%. EY said
the Covid-19 crisis has created a
tumult of fact and fiction with
reported misinformation, uniformed
opinion or fake news.
provided they did not conflict with
his responsibilities at the watchdog.
This has not proved possible and
so Dingemans (pictured) has
informed the Board and the
Secretary of State that he intends to
step down.
He is joining Carlyle Group as
managing director. The Department
for Business, Energy and Industrial
Strategy will now bring forward the
appointment of a new FRC chair.
fixed-odds betting terminals and
other slot machines. The Upper
Tax Tribunal case could now result
in HMRC paying refunds to other
companies dating back 20 years.
Justice Mann and Judge Thomas
Scott said that VAT should not have
been charged on takings from the
FOBT machines because they are
similar to VAT-exempt gambling
devices such as casino roulette
wheels. HMRC said it was
undecided on whether it will seek
permission to take the case to the
Court of Appeal.
 news PQ

AAT remote exams

AAT has confirmed that its remotely
PQ JOB OF invigilated August exams will
eventually run alongside in-centre

THE MONTH assessments, which restart on 29

Job title: Financial Controller

Salary: £35,000 to £40,000,
dependent on experience
Location: Manchester
Experience levels: PQ
Closing date: 14 July 2020
You will be working for Skyland,
a fashion importer supplying
internally designed knitwear to
some of the leading retailers in
the UK. It is a privately owned
business with a dynamic team,
and despite the current
circumstances with regards
Covid-19 the company has
ambitious plans for the coming
years.
June.
The big news here is that it will
take two weeks to receive results,
when some of the results are
instant at centres. Apparently, this
is so the AAT can check that there
has been no cheating. It can review
the footage!
Students will need to book their
remote exam with their training
provider, too. If you don’t have one
(if you self-study) then you will have
to book via the exam centre.
The remote exams are coming in
phases, says AAT. The actual dates
for August are not confirmed, but
the confirmed subjects are:
• Level 3 – AVBK, FAPR, MMAC.
• Level 3 – PDSY.
in place by August
In phase two (AAT is calling it the
second wave) it plans to introduce
Level 3 Indirect Tax; and
Management Accounting:
Budgeting; Management
Accounting: Decision & Control;
and Financial Statements
of Limited Companies at
Level 4. It is still up in the
air if the Foundation
Synoptic will be available
in phase two.
In the third and final
phase Level 2 papers such
as Bookkeeping
Transactions, Bookkeeping
Controls, and Elements of Costing
will be offered remotely.
AAT has said the Advanced
Synoptic, Using Accounting
Software and Optional Units will not
be available to sit at home.

Employers ‘prefer arts graduates’

For more go to
https://tinyurl.com/ybho6hky
Contrary to popular belief arts, humanities and social
science graduates are more in demand than science
graduates in eight of the UK’s 10 fastest-growing
sectors of the economy.
A study by the British Academy and London
Economics consultancy said businesses in sectors
including information and communications, finance,
transport and property all prefer humanities graduates.
In finance, almost 70% of graduate employees have a
humanities background.
The report also dispels the myth that science,
technology, engineering and mathematics (STEM).
graduates earn lots more. Gross hourly pay is roughly
the same on average, £17 an hour for humanities
graduates and £18.40 for STEM – that’s £35,360
compared with £38,272 a year.

PQ Magazine July 2020 9

PQ news

ZOE
ROBINSON
A blended
approach is
likely to be
the way
forward
Another month has passed and we are
still in lockdown, although there are
clear signs of progress, with
restrictions gradually being lifted. The
reopening of schools has been a
contentious topic and although
teaching in classrooms while
maintaining social distancing is not
going to be easy, it’s a key step in
getting back to a degree of normality.
But not all students may want to
return to how it was before. In a
recent survey by HEPI of 1,000
undergraduates, 49% were happy
with online learning compared with
only 23% who were dissatisfied.
Being happy in the short term doesn’t
mean the same students would
choose to learn online in the future,
but these are university students who
study full time and on campus, so
have an appreciation of how valuable
learning can be in this environment.
Having been forced to engage with
online learning the preferences of a
whole generation may well have been
changed irrevocably.
It is of course not a binary
decision. The scenario favoured by
many, and most likely to emerge in
accountancy training, is some form of
blend, combining the best of
classroom and online into a single
programme. In practice it’s not that
simple. There are many different ways
of blending and designing the best
mix requires all training providers to
challenge our thinking around
teaching and course design, taking an
evidence-based approach and
questioning why something works, not
simply accepting that it does.
Zoe Robinson is Learning and
Programmes Director at
Kaplan Financial
Online exams the norm
From early May, CIMA began the
delivery of its first-ever at-home OT
exams.
Students in more than 70
countries have now booked to sit
the exams remotely, and students
in over 40 countries had sat exams
by the middle of May. We can
report all is ‘going well’, but you
don’t have to believe us.
CIMA PQ and Civil Service Fast
Stream Graduate Matthew Barton
explained: “I was feeling rather
nervous about sitting my exam,
especially under new and
Local authorities have £10bn black hole
Some UK councils are reportedly
seriously thinking of declaring
themselves bankrupt because their
balance sheets cannot cope with
the financial pressures of the
pandemic.
There is an estimated £10 billion
black hole, and many authorities
are now openly discussing a ‘114
notice’, which signals their
bankruptcy. A report in The Times
Football clubs must publish full reports
All of UK’s professional football
clubs should publish full accounts,
says Kieran Maguire in his new
book ‘The Price of £ootball’.
He said the Football Association
could easily make it a rule that all
professional clubs are obliged to
publish full accounts if they want to
participate in FA competitions. “But
they have done nothing,” he says.
Maguire is worried that the FA’s
indifference towards public scrutiny
of stewardship of individual clubs
by owners does not reflect well “on
an organisation that is supposed to
be the guardian of the game”.
unfamiliar conditions. But once I
clicked ‘begin exam’ button the
process was very smooth, it’s close
said that councils in the Yorkshire
and Humber region are thinking of
making a joint declaration. The
problem is that as revenue has
gone down additional bills in these
regions has jumped £600m. There
are another 120 local councils
looking at a 114 notice. Making
such a move would impose severe
restrictions on spending and
massive cuts in services such as
enough to the test centre
experience so it’s not worth
delaying your studies until they can
reopen.”
And Siemens’ CIMA part
qualified Dan Ralls said: “On the
whole the experience was fairly
good and the online invigilator was
very easy to contact to ease some
of my concerns.
“I didn’t feel disadvantaged by
sitting my exam at home and I’m
really pleased to be able to
continue with my studies to hit the
targets I had set myself.”
parks, libraries and museums.
One senior local government
source has been quoted as saying:
“Many finance directors have their
finger on the 114 notice trigger.
The end of the financial quarter in
June may be when they pull it if
they continue to lose confidence
that councils will receive the
support they need from
government.”
Consequently, he explained clubs
can end up just following Bradford
City’s example, where its accounts
consisted of three pages and very
little detail.
Maguire ventured that fans are
kept in the dark and the
opportunity for financial abuses
merely increases. He said: “Many
small club owners are fantastic and
work tirelessly for little reward or
appreciation, but the scope for
abuse increases if there is an
information vacuum.”
• See pages 34 for our feature on
football’s finances – and a quiz.

Two for price of one
The FRC has opened
investigations into KPMG and
PwC over their audits of Eddie
Stobart Logistics before
trading in the company shares
were suspended. The FRC is looking at
KPMG’s audit for the year ending 30 November
2017, and at PwC’s audit for the following year
(30 November 2018). Last August accounting
problems meant the haulage company did not
file half-year accounts on time. KPMG resigned
as its auditors in November 2018 due to a
‘breakdown’ in its relationship with the firm.
PwC sued by Matalan founder
PwC is being sued by John Hargreaves, the
former owner of Matalan, over tax advice it
gave when he moved to Monaco. Hargreaves
relocated to the tax haven in 2000, and alleges
that the Big 4 firm were negligent when it
advised him on the timing of his move. PwC
refutes the allegations, and believe Hargreaves
is out of time to bring his claim.
UK avoids deluge of insolvencies
The number of corporate insolvencies during
April 2020 was actually down by a third on the
previous year as government support packages
gave companies vital headroom to deal with
the pandemic. A total of 61 companies fell into
administration this April compared with 91 in
April 2019, according to analysis of notices in
The Gazette by KPMG’s Restructuring practice.
Meanwhile, March saw 135 administrations,
compared with 116 in 2019. In total, there
were 444 insolvencies during the first four
months in 2020, down 5% from the 468 seen
between January and April 2019.
EY splits assurance/audit roles
EY has made four senior UK appointments,
effective on 1 July. Benoit Laclau is the new EY
managing partner for consultancy; Jeff Soar the
new managing partner for tax; Kath Barrow
becomes managing partner for assurance; and
Andrew Walton head of audits. EY has used
this opportunity to split the roles for assurance
and audit. As head of audit Walton sits on the
EY LLP Board, which remains 60% women
and 40% men.

10 PQ Magazine July 2020


Those July pilot
calculator rules
Yes, you will be filmed, but at least
you will be able to use your own
calculator!
There has been some initial
confusion about the ACCA July
remote pilot for the students sitting
the Applied Skills, AFM and SBL
exams at home.
PQs went on Facebook lamenting
the fact that they would not be able
to use their own calculators or have
any paper at their home exam
desk. While it was originally the
case that you couldn’t use your
calculator, ACCA has relented after
the issue was raised by tutors
involved in the pilot – and now you
can.
One tutor told us that they can
only presume lots of tuition
providers complained about this,
pointing out that CIMA allows its
students their own calculators.
It is, however, right about the
paper – you can only use the online
scratch pad, so no physical paper.
ACCA demands a clear desk.
Oh, and you are allowed a clear
glass on water or a clear bottle of
water. But remember you can’t
leave the room once the exam
starts, so no trips to the loo or
uninvited guests, no matter how
cute!
An ACCA spokesperson told PQ
magazine: “ACCA would like to
thank our students for their
continued support as we introduce
remote exam invigilation. The
unprecedented nature of the Covid-
PQ Magazine July 2020
news PQ
19 pandemic has prompted us to
accelerate the introduction of this
technology. But like all our
innovations and changes to exams
we have taken the step to introduce
this on a small scale, so have
restricted July numbers to be a
small, controlled session.
“Our goal is to ensure our end-
to-end exam process is future-
ready and upholds the rigour and
integrity of the ACCA qualification.
“As noted, students are
permitted to use calculators in the
exam but not scrap paper. We are
aware students prefer to use their
own calculators and not many use
the onscreen calculator, so to allow
students to perform as best they
can they will be allowed to use a
calculator.
“In remote invigilation we must
replicate exam centre conditions as
far as possible so students should
have a clear desk to ensure the
exam is being taken in the right
conditions and this means no paper
or other items on their desk. This
will be checked at the start of the
exam and then invigilators monitor
both the student and their screen,
but this means students cannot
leave their desk once the exam has
started”
They added: “We understand
that this is new for our students so
we continue to support our
students and work with our learning
providers to maximise the student
learning experience.”
11
PQ tech news
MIKE
DAY
E-invoicing
adoption
starts at the
top
E-invoicing is designed to reduce
error and delay by sending invoices
directly to customers’ accounting
systems. It will arrive as a pre-
populated bill, ready to be approved
and paid. The recipient won’t have to
check their email or manually enter
the invoice into their system.
While the adoption of e-invoicing
has been slow and steady in the past
few years it has accelerated as more
countries accept it as a best practice
(sometimes mandatory) standard. The
UK and Europe have been rolling out
mandatory e-invoicing standards since
2008, while other markets like the US
and India are exploring national
e-invoicing frameworks.
There’s no doubt that getting
governments and big businesses to
adopt e-invoicing will be the key to its
success. As notorious late-payers
large organisations have often
struggled to automate their accounts
payable process as quickly as small
businesses, due to the sheer number
of vendors they use and the absence
of an invoicing network that connects
them to their enterprise software
solution. E-invoicing gives these
organisations an opportunity to reduce
inefficiencies and manual processes,
resulting in faster and more accurate
payments to suppliers.
Over time, it’s believed that market
pressure will encourage more
organisations – including telcos, gas
and electricity providers – to get on
board. Once they begin implementing
e-invoicing there will be a knock-on
effect to their small business
customers and suppliers who suffer
from late payments.
Mike Day, Director, UK
Education Sector, Xero
Tech briefs
First cyber regiment
A new cyber regiment has
been launched to protect the UK’s
frontline operations from digital
attack. The 13th Signal Regiment
will provide ‘digital armour’ around
personnel operating overseas,
giving soldiers and their
commanders the ability to operate
with confidence in their
communication systems. Defence
secretary Ben Wallace said: “This
is a step-change in the
modernisation of the UK armed
forces for information warfare.
12
Indonesia tax on tech firms
Indonesia is about to slap a 10%
digital tax on overseas companies,
from the second half of this year.
The government said that any
company with a “significant
economic presence” selling online
products, including media
streaming, will have to pay the
value added tax from 1 July.
The finance ministry’s director
general of taxes said: “Under this
regulation, digital products such as
streaming music subscriptions,
streaming films, digital applications,
New wallet for Libra
Facebook has changed the name of
the digital wallet to be used with its
new cryptocurrency.
The wallet to hold, receive and
send Libra, the
currency, will
now be called
Novi. When first
announced last
year the plan
was to call the
wallet Calibra.
Following
massive scrutiny
from regulators and global banks,
the change is the latest in a series
of ‘tweaks’ since the Libra network
A new world record!
Australian scientists have set a new
internet speed world record, which
would allow you to download 1,000
HD movies in one second.
The researchers, from three
different universities, used a ‘micro-
comb’ – a single, small optical chip
replacing 80 separate infrared
lasers. The new speed (44.2
terabits a second) was also
achieved using normal cable
technology, raising the hope that
Cyber-attacks are every bit as
deadly as those faced on the
physical battlefield, so we must
prepare to defend ourselves from
all those who would do us harm
and 13th Signal Regiment is a vital
addition to that defence.”
Cyber attack on EasyJet
EasyJet has been the victim of
a ‘highly sophisticated cyber-attack’
that has affected nine million of his
customers. Email addresses and
travel details have been stolen,
along with the credit card details of
and games, as well as online
services from abroad will be treated
was unveiled a year ago.
Central banks and watchdogs are
worried that Libra could destabilise
monetary policy and help facilitate
money laundering.
To counter this the
Libra Association
(Libra’s governing
body) promised to
offer ‘stablecoins’,
which would be
backed by single
national
currencies.
• Novi was inspired by the Latin
words ‘novus’ for new and ‘via’ for
way.
the micro-comb will supercharge
current broadband networks.
So how does this all compare to
current internet speeds? Singapore
has the best download speeds of
197.3 megabits per second
(Mbps). In the US it is 133 Mbps
and in the UK it is 67 Mbps.
Australian speed are just 42 Mbps,
that is one million times slower than
the speeds achieved in the latest
tests.
2,208 customers. EasyJet has gone
public, as it fears phishing attacks
on unwary customers. The UK’s
Information Commissioner’s Office
has been informed.
London becomes global hub
Fintech investment in the UK
has exploded by 500% in the past
three years, compared with 170%
in the US and 133% for Europe. In
the first quarter of 2020, the UK
sealed nine major investment
deals, says the report from Robert
Walters and Vacancy Soft. The
on a level playing field with other
local products that have been
subject to VAT.”
Digital services providers will be
required to collect the tax and, if
they operate outside Indonesia,
remit it from abroad. Thresholds for
user numbers and revenue will
determine who pays the tax. One
exemption will be made for
research data.
Indonesia currently has a 10%
VAT on sales of most other products
and services.
Baby scans
VAT verdict
HMRC has failed to force a
private ultrasound company to
pay tens of thousands of pounds
in VAT after it had claimed that
the baby scans they produce do
not constitute medical care.
The taxman had argued that
the service provided by Window
to the Womb, which carries out
120,000 ultrasounds each year,
was a “bonding exercise”, and
were provided in addition to NHS
scans. This meant they should
pay 20% VAT. In the first-tier tax
tribunal, Window to the Womb
stressed that its service was
inherently scientific. All its
clinics are registered with the
Quality Care Commission, and it
employs members of the Society
of Radiographers. The tribunal
judge ruled in favour of the
clinic.
report identifies what the three
popular fintech products and
services will be in 2020: borrowing
and lending; messaging and
communications; and payments.
Robots to replace journalists
Microsoft plans to replace
dozens of journalists on its MSN
website and use AI systems to
select news stories, says a report.
AI will be used to curate stories
from news organisations and select
headings and pictures for the MSN
site. Some 50 jobs will be lost.
PQ Magazine July 2020
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PQ equality
#BlackLivesMatter
We asked the accountancy bodies
for their reaction to the events of
recent weeks in the US, here in the
UK and around the global...
AAT
Mark Farrar, CEO: As an organisation we truly
believe in valuing equality, diversity and
inclusion, and actively support positive change
in these areas.
What happened to George Floyd has
highlighted that things are not changing quickly
enough, and this is not acceptable. The Black
Lives Matter movement has highlighted that we
all need to do more and we all need to take
responsibility. I recognise that I and we as AAT
can and should do more. I am passionate about
ensuring our staff, students and members all
have equal opportunity to succeed.
As an accountant I was trained in numbers,
and our numbers tell me we can do better on
this specific topic. We are continuing to explore
what this means for us at AAT in terms of
actions, measures and impacts. AAT has an
active Equality, Diversity and Inclusivity (EDI)
staff group and they are already planning events
throughout the year. We’ve also recommended
that our staff get involved with EDI group activity
so we can all get
behind this movement
and make sure that we,
as an organisation, are
helping to lead the way.
The events of recent
days remind us that we
cannot look the other
way.
ACCA
ACCA statement: The
tragic events of recent
weeks and the Black
Lives Matter protests across the world are an
urgent reminder that inequality, racism, and bias
still pervade much of our society, and that much
more must be done to address this and
champion inclusion and diversity.
Since our founding days, inclusion has been
at the heart of ACCA and central to our values,
our behaviours, and our future as an
organisation. While ACCA has crossed
boundaries to build bridges we, like countless
other organisations, are committed to taking a
hard look at ourselves during this period, and in
the days ahead, so we can fully live up to our
responsibilities to be inclusive for a greater good.
We are strongly committed to valuing people’s
differences, to being an organisation where all
people – regardless of their gender, race,
ethnicity, or belief – can and must be respected.
As we embark on a new strategy, we’re
prioritising inclusion and diversity in everything
we say and do so we can continue to help effect
the positive change we need to see. We
14
recommit to the values of inclusion, innovation
and integrity that we have held for more than a
century to listen, to learn, and to act. Systemic
racism requires a systemic and sustained
response that supports and preserves
opportunities for all. That is why we support
Black Lives Matter.
CIMA
CIMA’s commitment to equity statement: As a
global professional organisation, with members
of a profession committed to the public interest,
we must demonstrate a deep commitment to
true diversity and inclusion.
The most pressing societal issue
we must address is the systematic,
structural racism that has caused
such anguish and frustration in the
Black community. We are
encouraged to see many people of
all colours speaking up and
protesting against injustice and the
senseless killing of George Floyd
and many before him.
We acknowledge the impact of
racial oppression on communities
around the world and are deeply
concerned to see some peaceful
protests overshadowed by violence. As leaders,
we recognise that we must advocate against
racism and act to build a more equitable society.
We offer our support and compassion to minority
and disadvantaged ethnic communities around
the world.
CIPFA
Rob Whiteman, CEO: We have just witnessed a
second weekend of protest, sparked by the
unjust killing of George Floyd in the US.
Confidence in governance has been eroded and,
across the world, communities are demanding
acknowledgement, explanation and justice. They
are demanding to be heard.
At CIPFA we advocate for strong civic
institutions, bolstered by robust systems of
governance, focused on and working in the
public interest. When trust in our institutions
fails, it is time to ask ourselves difficult and
uncomfortable questions. That these protests
come in the midst of a global pandemic, the
greatest threat to public health in more than a
century, only underscores our need to reflect.
The Covid-19 outbreak has thrown a spotlight
on the contribution public sector workers play in
all our lives. We have been reminded again of
the risks they take each day to keep us safe,
keep us in good health, to educate us and
convey us to work and home.
We have often been silent, or at best slow to
acknowledge, that disproportionate numbers of
these public servants belong to our black and
minority ethnic communities. This is regrettable
and something we should seek to address. As
chartered public finance accountants it is
important we stand in support of Black Lives
Matter. People are right to protest against
injustice; all should enjoy the benefits of liberty,
the fruits of prosperity and the protection and
care of public services. We call ourselves ethical
accountants. We say we are proud to work in the
public interest. We say we are committed to
building prosperous, sustainable and socially
just communities. If this is true, then we should
challenge ourselves. How we can do more to be
representative and inclusive of the communities
we serve; to ensure we see more black and
minority ethnic directors and senior staff; to
promote the need for resources to tackle
entrenched prejudice; and to find better ways to
ensure governance and decision making is
trained on these issues.
We know there is a groundswell of
determination among our students, members
and staff to see us take action against racism
and injustice. As chief executive, I am clear that
standing in support of Black Lives Matter is core
to our beliefs, that we must try harder and
challenge ourselves to do more.
ICAEW
Michael Izza, CEO: Racism and prejudice have
no place in our profession, and we all have a
role to play in stamping it out. We demand the
highest standards from all our members, and
expect them to be inclusive and treat others with
dignity and respect. Progress has been made,
but not enough. We’ll continue to champion
initiatives to boost diversity, equality and
inclusion within ICAEW and across the
profession. PQ
PQ Magazine July 2020
PQ study
the advice
‘Never put off till tomorrow
what you can do today’
Thomas Jefferson’s quote should be taken to heart by all PQs
determined to get qualified, says Pantelis C. Fouli
s we approach the ACCA exams the
A inner chatter is attempting to take over –
‘I won’t be ready’, ‘best leave this exam
for next session’, ‘missing one exam sitting won’t
make a difference’. I’m sure there are other
comments too. And I’m sure that if we spoke
to our friends the way we speak to ourselves at
times we would have no friends at all.
In a quick, three-step formula one of the best
personal development coaches in my country
stated the following:
• Do less, remember the famous 80/20 rule.
That is 20% of our efforts in any particular
endeavour is responsible for 80% of our
deliverables. For you, an ACCA student, what
does that mean practically? It means now,
three weeks before they start, our exams are
our priority. Delegate what you can to family
members and friends in order to lighten the
burden on you, enabling you to focus on your
studies.
• Be present. When Warren Buffet and Bill
Gates were asked about their number-one
16
strategy for achieving all that they have, their
answer was the same: focus! Focus, and be
present in the moment.
• Disconnect. We live in an age of continuous
Have you booked
your exams for
September 2020 yet?
Find out more:
accaglobal.com/bookexams
distraction. It’s virtually impossible to be
checking Facebook and Twitter while
attempting to be focused on our revision.
Switch off all electrical equipment and focus
on the task at hand.
Many of you will be stressing at this point,
so all I will say to you is just start. There is a
great power in just starting, the time will never
be right.
Practical tips
• Schedule your revision time and stick to it.
The things that get scheduled are the things
that get done.
• Wake up an hour earlier than usual, and get
in that one hour of study while the world still
sleeps. That one hour over three weeks can
add to over 20 hours of additional revision.
• If you can, cram in 30 minutes reading time
during your lunch break.
• Do focus on the task at hand, do
disconnect.
A Spartan saying goes as follows: “The one
who sweats more in practice bleeds less at
war.”
Please know that you are never alone; we
have our exceptional ACCA Community that is a
wealth of knowledge and support.
• Pantelis C. Fouli is ACCA qualified and an
ACCA Advocate and Student Mentor. See
https://www.linkedin.com/in/pantelisfouli, but
please mention in any personal message that
you are a PQ reader
PQ Magazine July 2020
 ethics PQ

Creating a better future

Alan Hatfield explains how ACCA is supporting ethics and trust for a sustainable future

he Covid-19

T pandemic has
created a new
purpose in all we do.
Many of us are re-thinking
the way ahead, and wondering what this
new purpose means for the accountancy
profession and the work it does.
Across almost every aspect of business,
professional accountants have been central
to helping organisations navigate everything
from challenging and competitive operating
environments, to ethically creating and
sustaining value streams.
Equally, the profession has deployed its
fundamental stewardship responsibilities to
protect the value created and manage risk,
and to communicate organisational action and
performance in a transparent, reliable and
responsible way. This enables stakeholders
to make much better-informed judgments.
The profession has been at the heart of
driving greater corporate accountability and
responsibility, building stakeholder trust in
organisations and those who lead them.
Here at ACCA we do not see this purpose
diminishing. As we begin to carefully step
out of the lockdown, we believe trust and
ethics will be part an even stronger part of the
purpose of the profession.
In ACCA’s recent report, ‘Accountants,
Purpose and Sustainable Organisations’,
Head of Business Reporting Sharon Machado
explores why the profession engenders
trust through its trinity features of ethics,
competence and connectivity.
Individually, these features may not be
unique to the profession, but taken together
they build a convincing case for why the
accountancy profession is well placed to
perform and help build and sustain value. eminent professionals and experts, including or studying finance – a unique opportunity
Ethics is the DNA of the profession, it means some of the recent laureates of the prize, to to reassess the role of financial institutions
professional accountants are focused on provide insights on the role of ethics. Such and in particular how they can provide a
doing the right thing, acting in the public insights are crucial because of recurring meaningful response to the changing needs of
interest in all that they do. financial crises over the last decade, the the communities in which they operate.
Machado said: “Focused on public interest, mounting challenge of climate change and Organised by the Observatoire de la
and backed by ethics, business and finance this current pandemic, which has triggered Finance, the prize encourages candidates to
expertise developed through lifelong learning considerable financial stress and plunged reimagine how financial institutions, together
and connectivity of the profession’s networks, the world in a major economic and social with their stakeholders, can balance the
professional accountants are central to crisis. The general theme of ethics and trust desire for growth, security and stability for the
creating, protecting and communicating value in finance has a pivotal role to mitigate the post-pandemic world.
for organisations and society. The profession negative effect of such crises. As a strategic partner along with the CFA
can be that source of trust society is calling Brand said: “As global business looks to Institute; Euroclear; Swift & Swift Institute; and
for.” how it can reconstruct post the pandemic, Pictet Group, the competition invites creative
Readers of PQ should also be aware that it’s clear that care for, and responsibility to, papers setting out analyses or proposals for
the 8th edition of the global prize ‘Ethics & each other and the world we share will be of innovative ways to promote ethics and trust in
Trust in Finance for a Sustainable Future’ was paramount importance. Thinking deeply about finance. The Jury allocates the prize money of
launched on 2 June. ACCA’s chief executive, this and re-building in a way that benefits $20,000 among the winners.
Helen Brand, took part in the launch all in society has never been more vital and To register for the Prize go to
roundtable discussion exploring the role of it makes this prize even more relevant and http://www.ethicsinfinance.org/how-to-enter/
ethics and trust in shaping a more sustainable resonant.” The closing date for submission of essays is
and resilient financial system for the post- I truly hope PQ readers enter this really 31 May 2021.
pandemic world. relevant prize. Since 2006, it has offered • Alan Hatfield, Executive Director, Strategy
The launch ceremony brought together young candidates – under 35 and working in & Development, ACCA

PQ Magazine July 2020 17

PQ the future of education

A changing landscape
The coronavirus pandemic has sped up the implementation of classes such as accounting.
‘edtech’ across the world – and it seems like it’s here to stay Students’ expectations are also changing. At
Mindful Education, we have made our ‘Online
hile there has been considerable and On Campus’ courses available to all UK

W discussion about the role of

technology in education for some
time, the recent coronavirus outbreak has
accelerated its use across traditional educational
establishments.
The 2010s saw huge levels of global
investment into education technology (or
‘edtech’), but until recently the uptake has
remained low, as institutions were reluctant (or
unable, often due to a lack of financial resources
themselves) to embrace change.
However, Unesco figures show that school,
college and university closures as a result of
Covid-19 have impacted nearly 80% of the
world’s student population across 138 countries,
meaning some 1.37 billion learners are now
studying from home, relying on technology to
do so. In the UK alone, a recent article in the
Guardian states that seven in 10 teachers agree
that “lockdown has led them to adapt to new
technology at a faster rate”.
Educational institutions – from reception
classes right through to adult learning – have
realised the power of technology in making
education accessible without students or
teachers having to set foot in a classroom.
While this approach may not be sustainable for
younger learners or more hands-on disciplines
such as hairdressing or medicine, this shift
represents a huge opportunity for theory-based
colleges free of charge, to help ensure that
learners who usually study traditional face-to-
face lessons are able to continue their studies
while college doors are closed. In a recent
survey of these students, we asked the question
‘How important will technology be in the future
delivery of your education and training?’. The
response was overwhelmingly in favour of the
integration of technology, with an average score
of 8.8 out of 10 (of which, 47% gave it 10/10, or
‘essential’).
Students no longer wish to restrict their
learning to the classroom, and despite their
previous reluctance, educational institutions
are stepping up to accommodate this. It’s clear
to see that while we may, slowly, be returning
to ‘normal’, the impact of Covid-19 on the
education sector will be irreversible.
• Thanks to Mindful Education for this article.
Mindful Education creates professional courses
and apprenticeships, delivered through a blend
of online and face-to-face learning. Find out
more at mindful-education.co.uk

It’s what
we call

digital
first
Give your career the ultimate flying
start with the business qualification
that takes you where you want to go.

Register now at accaglobal.com/pq

18 PQ Magazine July 2020


All that Jazz!
Award-winning Jazz Gandhum, CEO of e-Careers, looks back at the
roller-coaster last 10 years – and looks to the future, too
here are many layers to e-Careers’ CEO
T Jazz Gandhum. A BEng civil engineering
graduate of Kingston University, he
won ‘Entrepreneur of the Year’ in 2017 at the
Amazon Real Business Awards.
He acquired e-Careers in 2011 and has
turned it into one of the top online providers
for AAT and CIMA PQs. It also offers the ICB
qualification.
Gandhum’s key mantra is to create affordable
and accessible education for all. He also has
a clear vision to change the way people study
through digital technologies.
There are many strings to Gandhum’s bow. He
developed a natural isotonic drinks brand, iPro
Sport, which is the hydration partner to over 20
sports including football, rugby and cricket. He
is also on the board of his father’s multinational
business Duflon, which manufactures Teflon
products for the chemical process industry,
supporting over 700 employees and exports to
more than 30 countries.
Gandhum is someone who knows all about
disruptive business (he’s won an award for that
too). So we thought it was time to get his insight
into the new normal, and what lies ahead:
How have the last three months in lockdown
been for e-Careers?
How have you coped? While the world was
on lockdown, the e-Careers team has been
working in overdrive. Online learning has hit
the headlines in a big way, and as a dynamic
‘edtech’ company we fully understand that now
is the time for us to really shine!
What have you done to help your accountancy
students?
PQ Magazine July 2020
Many people want to study accountancy but are
faced with ongoing restrictions. Our research
revealed that affordability and a device on which
to study full-time was a common limitation. As
such, we have prepared three key areas that we
can help learners facing these limitations:
• We now offer a Learn Now, Pay Later scheme
where students can study and pay over 12
months with 0% interest.
• We partnered with HP to offer a free HP
laptop for anyone who studies a Level 3 or
Level 4 AAT qualification with us.
• We partnered with Xero to provide Xero
certification at no additional cost to our
learners – an added benefit in a fast-growing
cloud computing market.
You got involved in e-Careers in 2011. What
was the company like when you took it over?
It was a lifestyle business for over eight years.
The digital learning age was simmering around
that time and when I took over in 2011 I had
a clear vision of the impact technology would
have in future learning habits and the role we
intended to play.
It’s been almost 10 years now. What do you
see as the biggest changes in the accountancy
education in that time?
I always say that the ability to do sales and
understand numbers is a must for any business
owner. The rise of online bookkeeping software
has made accounting simpler for businesses.
This has led to a change in the demography
of people that are comfortable studying
bookkeeping and accounting qualifications. It is
not only accountants or bookkeepers who study
AAT!
profile PQ
Exalted company: Jazz with
Lord Taylor of Warwick and
Sir Eric Peacock at the
House of Lords
The introduction of technology in the learning
processes has also significantly reduced the cost of
qualifications whilst maintaining pass-marks over
the past 10 years enabling more people to enter
the sector than would have otherwise been able.
You won the Amazon Growing Business Awards
‘Entrepreneur of the Year’ in 2017. How did
that feel?
This is one of the most memorable experiences
of my life. There were thousands of highly worthy
candidates and I remember being invited for
an interview at Grosvenor House in London a
few months before the award was due to be
announced.
Later I learnt that I was one of six finalists,
and the winner would be announced at a special
event in the City. It was the final presentation of
the night and when the final award was about to
be announced I was standing by the bar!
A few seconds later my name was announced
as the winner and I was asked to collect my
award and talk about my journey – with zero
preparation. I still cannot recall what I said that
night as it remains a blur. I do recall calling my
wife and messaging the e-Careers team with a
photo. It is one of those moments you have in life
when you still can’t comprehend what, how – me?
How do you see the world of online training
evolving in the next few years for accountancy
students?
I regularly speak about this to our college and
university partners. Covid-19 has fast tracked
the path on which we were already on – digital
learning is here to stay and something we have
to come to terms with.
Despite all the potential and positives of online
learning, it does require the individuals who are
doing the courses to be committed and able
to manage their time better than I think we are
all doing at the moment. Until this happens,
I feel that professional qualifications such as
accounting will rely on a blended approach
of eLearning with tutor intervention to provide
best results. Something we have been doing at
e-Careers for many years now...
19
PQ analysis
The myth of
shareholder
ownership
Can shareholders own a company? The answer is not nearly as
straightforward as you might think, says Professor Prem Sikka
o shareholders
D own companies?
The answer to
this simple question may
appear to be obvious but
may not be correct. The
Companies Act 2006 does
not say that shareholders
are owners of companies,
although shareholders have
some controlling rights.
We tend to think about ownership in everyday
commonsensical way. If you own a phone you
can use it at all times, rent it out, sell it, take it
home, pawn it, smash it or give it away. If you
hurt someone with it, that party can sue you for
damages. Such simple notions of ownership do
not easily apply to ownership of companies.
Tests of ownership
In legal literature and case law, ownership is
characterised by incidents of rights, powers,
liberties and immunities; and duty and liability.
Ownership is only conferred when they are
present in sufficiency. The rights include (1)
the right to possess: to have exclusive physical
control of an asset, or to have such control as
the nature of the asset admits; (2) the right to
use: on a very narrow interpretation ‘use’ relates
to the owner’s personal use and enjoyment of
the asset owned; (3) the right to manage: the
right to decide how and by whom the asset
owned shall be used; (4) the right to the income
of the asset: income in the ordinary sense (fruits,
rents, profits) may be thought of as a surrogate
of use, a benefit derived from forgoing personal
use and allowing others to use it for reward; (5)
the incident of residuarity: it is a characteristic of
ownership that an owner has a residuary right in
the asset owned.
The idea of ownership confers powers, liberties
and immunities. These include, (1) the right
to the capital: the right to capital consists of
the power to alienate the asset by transferring
ownership to others through exchange, sale, gift
and mortgage, etc. This is closely related to, (2)
the power to transfer ownership to successors.
(3) The liberty to consume, waste or destroy
the whole of part of the asset. (4) The right
to security. The owner should be able to look
20
forward to retaining ownership indefinitely, if s/he
so chooses and remains solvent. This is, in effect,
immunity from expropriation, based on rules that
apart from bankruptcy and execution for debt, the
transmission of ownership is consensual.
Ownership confers duty and liability towards
others and includes: (1) the prohibition of harmful
use. An owner’s liberty to use and manage the
item owned as s/he chooses is subject to the
condition that uses harmful to other members of
society are forbidden. (2) Liability to execution:
the liability of the owner’s interest to be taken
away from him/her for debt, either by execution of
a judgment debt or on insolvency.
Courts have long made it clear that
shareholders have no legal or equitable interest
in any part of the company’s property or assets,
and the company is the sole and beneficial owner
of all the property vested in it. The case of Short
v. Treasury Commissioners [1948] 1 KB 116
122, stated that “shareholders are not, in the
eyes of the law, part owners of the undertaking.
The undertaking is something different from the
totality of the shareholding.”
Unlike the agency theory, corporate law does
not grant shareholders the right to necessarily
impose their will on the company. The case
of Gramophone & Typewriter Ltd v Stanley
[1908] 2 KB 89 stated that “even a resolution
of a numerical majority at a general meeting of
the company cannot impose its will upon the
directors when the articles have confided to
them the control of the company affairs. The
directors are not servants to obey directions
given by the shareholders as individual; they are
not agents appointed by and bound to serve the
shareholders as their principals”.
Shareholding in practice
The ownership of shares cannot be equated with
ownership of companies as it fails most of the
tests specified above.
Shareholders possess a piece of paper entitling
them to receive future income, but do not have
the right to use any of the assets held by the
corporation for their personal use. Companies
are legal persons and in that capacity, they can
own assets and use them in accordance with the
directions given by directors. If any shareholder
were to attempt to possess the asset and use
it for personal enjoyment, s/he will probably be
accused of theft.
As the assets are legally owned and managed
by the company, it can grant charges on property
and also license it to third parties to generate
income without the permission of shareholders.
Shareholders cannot use the assets of a company
to satisfy their own debts. In common with other
consumers, shareholders can use a company’s
assets and services by paying a price, but they
generally do not have any special privileges
arising from their investment in shares of the
company.
Shareholders do not have a right to manage
the company or the assets vested in the company
in which they own shares, though they can elect
directors to do so. Shareholders can vote on
resolutions to constrain management, but that
does not result in the right to manage assets.
Most votes at annual general meetings of UK
corporations are advisory rather than binding on
directors.
Shareholders do not have the right to demand
income from the assets owned by the company.
They can receive dividends, but only after
directors agree to declare them. Shareholders can
vote to accept or reduce the payment of dividend,
but they cannot demand a higher amount.
In principle, shareholders can hold share
certificates for an indefinite period, and can
continue to enjoy the benefits derived from it as
long as the company remains in existence.
However, the state can nationalise industries
PQ Magazine July 2020

and restrict the ability of individuals to hold
shares. Shareholders cannot recover the capital
represented by share certificates from the
company. Of course, they can sell their shares
to another party, but under competition laws the
state may disapprove mergers and takeovers and
veto the ability of shareholder desire to buy or sell
shares.
Shareholders can transfer or bequeath shares
to successors, subject to the taxation laws of the
country. The same also applies to using shares
for gifts or mortgages. The share certificates
may have some value as long as the company is
solvent.
In the course of their business, companies may
sell their assets, but shareholders do not have
the right to receive the proceeds unless directors
so elect, subject to statutory rules about solvency
and capital maintenance. Shareholders do have
a residual interest in the event of bankruptcy,
PQ Magazine July 2020
assuming that the assets have been disposed to
satisfy the prior claims of secured and unsecured
creditors. In practice, shareholders may receive
little or nothing.
According to legal arrangements shareholders
bear the residuary risks, but unlike employees
they can manage some of their risks by holding
diversified portfolios. In economic theory there
are considerable similarities between the
position of a shareholder and a debt holder.
Both are outside the corporation and both have
provided money to a company in expectation of
a return. The return due to debt holders may
be written into a contract and needs to be paid
before payment of any dividends, but neither is
guaranteed income or the return of the original
loan or investment.
There is considerable evidence to suggest
that in pursuit of higher profits and shareholder
returns, companies have engaged in harmful
analysis PQ
actions, including the sale of harmful products
(tobacco, alcohol), manufacture diseases, deadly
weapons, genocide, cartels, tax avoidance, money
laundering, bribery and corruption.
Harmful actions may increase returns to
shareholders, but also blights the lives of many
people. Shareholders may receive a higher return,
but they cannot be individually held responsible
for the consequences of harmful actions by their
companies.
Shareholders can attend annual general
meetings and extraordinary meetings to vote on
resolutions and ask questions about harmful
practices, but they cannot bind directors to follow
a particular business strategy. If a company
is found guilty of harmful/illegal practices,
shareholders cannot be asked to compensate
the victims as their liability is limited to the extent
of their share capital. The ultimate sanction is
that shareholders can voluntarily liquidate the
company engaged in harmful practices, but that
is rare.
The state can liquidate a corporation engaged
in harmful practices even against the express
wishes of its shareholders, but shareholders are
not required to make good the damage done to
other stakeholders and society. Seemingly, the
corporate veil permits shareholders to benefit
from practices, which as natural persons they
would not be able to.
Conclusion
To sum up, the claims of the shareholder
supremacy in accounting, auditing, finance
and corporate governance literature rely on the
assumption that shareholders own corporations.
However, shareholders cannot own companies in
the same way that an individual can own a mobile
phone.
Shareholders are not the owners of
corporations as they fail most of the tests
associated with ownership. Shareholders
cannot possess or use any of the assets held
by a corporation. They cannot dictate business
strategy, control the sale of assets, demand
dividends or be held liable for a corporation’s
actions. They may claim residuary interest by
liquidating the corporations but there is no
guarantee that they will receive anything. The
property of a company is entirely separate from
the ownership rights of individual shareholders.
Shareholders have entitlement to receive
income and this is accompanied by limited
liability and social irresponsibility because
they do not directly bear the cost of corporate
malpractices. Bringing corporations under public
control remains a major challenge.
• Prem Sikka is professor of accounting and
finance at the University of Sheffield
21
PQ back
the to basics

Double entry
are traditionally considered first and appear
on the left-hand side of an account. Credit
entries are written up on the right-hand side.
• The when to debit and when to credit rule:
There are two ways to remember when to
debit and when to credit. One way is by

bookkeeping
reference to this table.
Increase Decrease
Asset Debit Credit
Expenses Debit Credit

explained
Liabilities Credit Debit
Income Credit Debit
Equity Credit Debit

So, going back to that example of the

business paying rent. Here, one effect is the
Tom Clendon explains why this basic tenet of accountancy is all increase in the element of expense, and this
about accepting that rules are rules – simple as! is a debit in the rent account. While the other
effect is a reduction in the element of asset that
hether you have just started studying statement of financial position. These are assets will be recorded as a credit in the cash at bank

W accounting or whether you are about

to sit your finals it is always useful to
know your debits from your credits.
(resources that are controlled, for example
land), liabilities (obligations, for example trade
payables) and equity (sometimes called capital
account.

This is because all financial transactions can
be boiled down and explained in these terms.
In a complex world double entry bookkeeping
is refreshingly binary and straightforward. For
double entry bookkeeping is nothing more than
the application of rules. Which is why it is so
easily computerised.
There is no room for judgement or subjectivity
in applying the double entry rules. So, in
a strange way, please don’t try too hard to
understand this aspect of accounting because it
really is all about the accepting and application
of these rules.
The five elements
In financial accounting five elements have been
identified.
Three of these elements will be reported in the
Check out the first in a series of Back to Basic Videos
We start with ‘Double Entry Bookkeeping: the Movie’! It stars top tutor
Tom Clendon.
You should be able to master the rules of double entry bookkeeping in
just eight-and-a-half minutes!
Click here
– this is the ownership interest and examples
include share capital and retained earnings).
Two elements are found in the statement of
profit or loss. These are income (e.g. revenue
from selling goods and services) and expenses
(e.g. rent and wages).
• The duality rule: The duality rule states
that for every single transaction there are
always two effects on the elements. For
example, when a business pays rent there is
an increase in the element of expense that
will be recorded in the rent account AND a
reduction in the element of asset that will be
recorded in the cash at bank account.
• The one debit and one credit rule: When a
transaction is being recorded, one effect will
always be recorded as a debit and the other
effect will be recorded as a credit. Debits
DEAD CLIC
The other way is to recall the mnemonic
DEAD CLIC, this identifies when to increase an
account. The second D stands for drawings
(or dividends) which represent a reduction in
the equity due to payments being made to the
owners. The second C stands for capital – which
is another name for equity.
Debits Credits
Expenses Liabilities
Assets Income
Drawings Capital
Examples of debits and credits
Q. What is the double entry when the business
takes out a $20,000 loan?
A. Being aware of duality means that the money
received will result in an increase in the element
of asset – specifically the cash at bank account;
but that in addition, as there is an obligation to
repay the loan there will be an increase in the
element of liability and a loan account.
An increase in an asset is the debit and the
increase in the liability is the credit.
By convention this is often summarised in a
journal form as follows.
Debit Cash at Bank account $20,000
Credit Loan account $20,000
Q. What is the double entry when a trade
receivable for $800 goes bankrupt and the
debt has to be written off as irrecoverable.
A. Being aware of duality means that recognising
a bad debt increases the expense of bad debts
and it will also result in a decrease in the
element of asset, the receivable account.
An increase in an expense is the debit and
the decrease in the asset is the credit.
Accordingly, the journal entry for writing off a
debt as bad is as follows
Debit Bad debt account $800
Credit Receivables account $800
• Tom Clendon FCCA is an ACCA online SBR
tutor with FME. See www.tomclendon.co.uk

22 PQ Magazine July 2020


A bookkeeper’s journey
PQ magazine caught the train with Joanne Crompton, a real
inspiration to fellow bookkeepers everywhere
oanne Crompton leads a busy life. She
J is a wife, a mother of four, works in an
accountancy practice, is a Victorian house
renovator – and, in her ‘spare time’, she is a
volunteer at two heritage railways as a steam
locomotive fireman.
Her first venture into bookkeeping began
back in 1995 after the birth of her son – her job
was to collect the monies in a small mother and
toddler group. This is where she first developed
a passion for bookkeeping and accounts.
Eventually this experience led to a career
working with various companies within the
manufacturing industry, dealing with the normal
basic day-to-day bookkeeping tasks and month-
end procedures.
Throughout this time she felt she needed a
PQ Magazine July 2020
recognised qualification to push her career for-
ward, but the time and opportunity never arose.
In October 2018, she moved to a small
accountancy practice as a bookkeeper and
payroll clerk, but she worried about the little
gaps in her knowledge.
Shortly after starting in her new role she was
diagnosed with a rare form of aggressive cancer,
which rightly changed her whole perspective.
Joanne decided it was now or never to train as a
bona fide bookkeeper.
She set about doing her research. She
needed a course that she could take at home, in
her own time, that fitted into her busy life. She
quickly decided the ICB was the right institute
her, and through the ICB website she found
approved provide the Training Link.
profile PQ
Signing up for Level 2 and 3, she began her
studies in April 2019 while recovering from
cancer treatment, and passed her ICB Level 2
qualification in October 2019. She achieved a
Distinction with Honours at 98%.
Joanne began her ICB Level 3 qualification
shortly after, and her aim is to finish that and
then go on to study the ICB Payroll qualification.
The end goal is ICB Level 4.
She has nothing but high praise for Training
Link. She particularly liked the official student
group, moderated by tutors, where you can
discuss things with other students.
Joanne plans to continue working in practice,
and says: “I love the variety it brings and being
ICB qualified will enable me to provide the best
and excellent quality service that I can.”
• If you want to become a qualified
bookkeeper check out Training Link,
a PQ magazine award winner, at
www.training-link.co.uk
23
PQ ACCA exams

‘Your Honour,
from an official ACCA technical article – for example, March 2020
Q1 references the article ‘Patterns of Behaviour’.
4. AFM ‘numbers’ became more susceptible to pro-formas, as long
as you recognised the ‘clues’ in the questions. Here, reading the
question carefully is key: what appears to be a unique question is

I present the often asking you to apply familiar skills and techniques.
5. There is a clear pattern that AFM questions are predominantly being
sourced from what has been set in the past. For example, March
2020 could be traced back to similar questions from five previous
papers. History repeats itself.

case for AFM’

Sunil Bhandari puts the case for the Advanced
Financial Management option paper
hoosing your ACCA Strategic Professional Level option papers is
These are all positive factors that have benefitted the students who
have attempted and cleared AFM. More importantly, they should be
noted by the candidates preparing for the future AFM exams – whether
that be paper based format or the new CBE.
However, there is an important point that students should note very
carefully. AFM candidates are still expected to be able to understand
some basic maths, irrespective of the exam format they are sitting.
For example:

C important. Your choice will be driven partly by necessity, partly

by your interests, partly by your comparative strengths and partly
by your future career progression. But may I ask you to keep in mind
1/(1+r) ^n = (1 +r) ^-n AND 3N = N^(1/2)

But what about CBE?

the option paper’s comparative pass rate. There are so many ingredients Computer based exams (CBE) will change everything. CBE exams require
that are needed to make the correct choice and ultimately achieve your different skills as compared with their paper cousins. But each option
target – to qualify. paper will be impacted differently.
AFM (formerly called P4) is one of your four choices. Unfortunately, I At the time of writing I’ve prepared videos debriefing 26 past AFM
can say very little about the other three option papers. May I leave that exams. for my CBE question-based revision course, and aim to prepare
responsibility to my fellow tutors who teach/specialise in those papers. another 20 videos this season. My conclusion is that the ACCA CBE
They act on behalf of their papers and I nod in due respect. I am the spreadsheet makes ‘crunching the numbers’ in AFM much easier. The
advocate that is representing my client – AFM. photo shows the same question answered on paper and in the CBE
AFM is the ACCA’s introduction to the world of Treasury. The treasurer spreadsheet. Which do you think was quicker to prepare?
is the spider at the centre of any major company’s web of relationships
– whether externally with bankers, shareholders and the markets, or
internally with subsidiaries competing for the next CAPEX dollar, or
precious liquidity. The currencies of AFM are project appraisal, risk
management and business valuations.
AFM practitioners are looking through the windscreen driving the
enterprise, and the changes wrought by the global financial crisis,
quantitative easing and the shifting sands of global political influence.
AFM seeks to give you the tools to make decisions, manage risk and
value entities. AFM is about solving real life problems with real life
solutions, and to boot it’s great fun.

Where does this story begin?

P4 launched in December 2007, with a ‘steady as she goes’ approach,
until the ‘infamous’ June 2009 paper. I’ll never ever forget that paper:
technically demanding and extremely time-pressured, it left an indelible
stain on P4’s reputation with many tutors. June 2009 is 11 years ago,
but to this day many will say “yes, financial management is interesting,
but don’t sit AFM, it’s too hard”.
The way back from that deep abyss involved a new examiner and
a (welcome) change in style. P4 became ‘firm but fair’, and approved
ACCA P4 articles gave well-prepared students the guidance they
deserved. As the author of several of these articles, four of which
are still on the ACCA website, my brief was to make it practical and
relevant.
However, P4 retained its ‘tough’ reputation, and many students,
looking for the fastest route to qualify, chose option papers with higher
pass rates. This is perfectly understandable, but as stated above, is only
one of several factors to accrue for when choosing your option papers. ACCA, to their great credit, have created a CBE practice site for you to
All that changed with the September 2018 paper. Suddenly AFM use. Those tutors who use that site can mark questions and exams they
jumped to the front of the pack. set for their students to practice. This is an invaluable resource. Watch this
So what happened? space for another article on how best to prepare for your AFM CBE exam.
1. A new 100% compulsory format made the exam fairer: before that
the question you chose could impact your chances. Now, you simply ‘My closing statement’
decide the order you intend to attack the paper and ‘go for it’. AFM puts accountants at the heart of doing business. For over 30 years
2. Clearer guidance: 2 of the 5 AFM syllabus areas will be examined I’ve enjoyed making financial management accessible to students, and
every exam: Advanced Investment Appraisal and Treasury and getting them through their exams. The new CBE exam is going to make it
Advanced Risk Management. Business Valuations is also a common even more fun.
visitor. Students should always cover the whole syllabus, but some Choose AFM because it’s interesting, fun and above all relevant.
‘some topics are more equal than others’. I rest my case.
3. A more predictable written content. Between 48% and 52% of • Sunil Bhandari is an online tutor with FME Learn Online.
marks have been for theory/written content, often drawn directly See www.SunilBhandari.com

24 PQ Magazine July 2020

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In the fast lane
Daniel Dudley completed his full CIMA qualification with e-Careers, earning ACMA and CGMA status, in
just three years. So how did he do that?
eet Daniel. He recently
M became a finance manager,
providing financial support to
a portfolio of businesses, including tax
planning, software implementation and
investment appraisals. We asked him
about his story so far.
You’ve recently fully completed the
CIMA qualification. How did you find
studying CIMA while working, and how
did you manage the work/life balance?
The CIMA qualification is such a great
qualification to have, and it’s recognised
so widely. Now I have finally finished
and am a Chartered Management
Accountant I can look back on the
amount of sacrifice and studying I had
to do for three years and can easily say
it has been worth it! Studying CIMA
while working full time was a challenge.
I found a few things specifically helped
to manage it:
• You’ve must set goals: For every
course, I set a goal of how quickly
I wanted to sit and pass the exam.
My default was 10 weeks for the
standard objective tests and you
only really have seven weeks for
case studies. Knowing I only had
10 weeks forced me to plan what
topics I would cover in each of those
10 weeks when I would do mock
tests, how much question practice
I would do and so on. Then track
yourself against this. I had a very
detailed study plan and set targets
of how many hours I was going to
study that week. When I was falling
short of where I should be, I could
change my schedule to get me back
on track.
• Be consistent: I would get to work
an hour early to study CIMA, and I
got into a great habit of doing this
every day. I found that I could get
through the content of the course
in six to eight weeks. Since it was a
consistent effort, my retention of the
knowledge was secured for the long
term.
• Be realistic with your study plan:
Early on in my studies, my wife
and I had our first child. As you
can imagine my studies dropped
significantly as other priorities in life
took over. You’ve got to be realistic
with your study plans. There are
aspects of life that will take over from
time to time, year ends, forecasts
or budget cycles might mean longer
PQ Magazine July 2020
Daniel studied hours at work. However, if you factor
CIMA with those into your plan and be realistic
e-Careers, who with what you can commit to, you’ll
offer interest- find that you can stick to your plans
free payment better and get through the papers in
plans and have no time.
exceptional pass
rates What advice would you give to
individuals contemplating starting a
CIMA qualification right now?
I’ve spoken to many people in business
that wish they had done CIMA. If it
interests you, start now. The key with
CIMA is to get experience alongside your
studies. The knowledge is great but for
the PQ
interview
it to be valuable you really need to see
how finance works, the knowledge CIMA
gives will make it easier to understand
but you will need to see it and learn it.
From all the knowledge you’ve gained
from CIMA so far, what has been the
most important thing you’ve learnt?
Be curious. Obviously, CIMA covers
quite a wide range of topics that as an
accountant you need awareness of.
The most important lesson CIMA has
taught me is to be curious. I found
my experience studying CIMA has
been enriched by proactively trying to
understand topics in depth.
What is your current job title and what
are your responsibilities?
I am a Finance Manager for a company
that offers operational, commercial
and financial support to a portfolio of
businesses. My role includes business
planning and budgeting, setting up
management accounts, tax planning,
implementing new controls and
software, investment appraisals, liaising
with companies’ accountants and
more. It’s very varied but has been very
rewarding.
How often do you use the skills you’ve
learnt from CIMA training in your day-
to-day life at work?
All the time! Variance analysis is a
management accountants’ bread
and butter! I use this all the time to
understand why performance is not as
expected. There are just so many skills
you can learn if you really throw yourself
into studying CIMA. The qualification
will equip you with the knowledge you
need to do well, however if you really
invest in understanding and seeking
ways to apply the knowledge you’ll find
the skills you develop will serve you
in many situations in and out of the
finance function.
Do you find a career in accounting
rewarding?
I find it very rewarding. Accountants are
such an important part of any business.
What I find accountants particularly
good at is finding out how businesses
are actually performing and being
able to track that. That’s what I find
rewarding as an accountant - helping
the business to really understand what
is going on..
• Thanks to e-Careers for this article
27
PQ ACCA exams
Those September
changes
PQ magazine runs the rule over the syllabus changes for ACCA
exams this autumn
CCA traditionally uses the September
A exams to institute any changes it wants
to make to its syllabuses. With no June
exams for many, it is important PQs get a handle
on what is changing.
The good news, says ACCA, is that there are
not too many changes overall. There are, for
instance, no changes to the Applied Knowledge
papers.
For the Applied Skills exams there are some
word changes to AA and FM, but there are no
syllabus changes this September. ACCA here is
just adopting IAASB updated terminology for AA,
and tinkered with the few words for FM.
28
For LW and FR the syllabus remains the
same.
The one paper highlighted at this level is
PM. For September, you will be expected
to be able to explain how big data and data
analytics can be used in relation to planning,
costing, decision-making, and performance
management. This reflects changes to section
A3d in the syllabus. You will also be expected
to be able to explain how, for example, gaining
detailed insights in customer purchasing habits
would help an organisation plan targeted
marketing or decide which products/services
to promote, or how detailed performance data
Registered Tuition Provider
about organisational processes would help to
create cost models.
A new learning outcome has been added to
this area and looks at challenges and risks around
information systems and data analytics (syllabus
section A3e. This relates to the investment
to collect such data, how that data would be
managed and translated into information, and the
risks holding so much data may bring.
For the Strategic Professional level SBL
and AFM remain the same. The changes are
‘happening’ in SBR, APM and AAA.
So, let’s start with SBR first. As detailed in
section F1c you will be expected to discuss
the impact of current reporting issues in
corporate reporting. This could be tested by
asking you to apply one or several existing
standards to an accounting issue. You may
also be asked to provide an explanation of the
resulting accounting implications (for example,
accounting for cryptocurrency in the Digital
Age, or accounting for the effects of a natural
disaster and the resulting environmental
liabilities). The examinable document
shave also been updated to reflect current
development.
For APM there have been some additions
to the syllabus. Process automation and the
internet of things have been added to the
syllabus section C3b. You will be expected to
understand how these influence the information
and systems used by organisations.
Artificial intelligence (AI) has been added
to the syllabus section C3c, where you must
demonstrate your understanding of how
organisations can utilise AI technology to
manage processes, collect information, and add
value.
The use of presentation tools, such as data
visualisation within management reports,
has been included in syllabus section C5av.
Although you will not be expected to produce
visuals using these techniques, you may be
required to explain how such tools can be of use
when reporting information at different levels of
the organisation.
Finally, there are no significant changes to the
AAA syllabus. However, the wording of learning
outcome D2b has been revised to reflect the
most up-to-date terminology being adopted
by the IAASB. The wording now says: “Assess
and describe how IT can be used to assist the
auditors, and recommend the use of automated
tools and techniques, such as audit software,
test data and other data analytics tools.”
And that is it. You should note that the TX
and ATX papers have a life of their own, as
always!
PQ Magazine July 2020
 qualification choices PQ

CIMA vs ACCA
study, but offering slightly less flexibility.

3. What will I study?

The CIMA qualification offers modules such
as ‘Project and Relationship Management’
Liz Hulls looks at the relative advantages of both ACCA and CIMA. or ‘Risk Management’, with the emphasis on
managing performance. The new syllabus
So which is best for you? embraces how the digital world affects
1. Career path
ou’re about finance with management and financial

Y to finish
your AAT
qualification, or
It is always difficult at an early stage in your
career to imagine where you see yourself
in five years’ time. If you can currently
graduate from only envisage working in business or
university, or simply industry, then CIMA is more likely to be the
contemplating qualification for you. If you would prefer the
starting out in your flexibility of being able to work in industry or
accounting career. practice, or maybe even as a self-employed
Your next choice is accountant, ACCA might be more suitable.
to select from an
initially overwhelming 2. Study route
selection of Both qualifications will involve passing many
acronyms: ACA, tough exams. Launched in November 2019,
ACCA, CIMA, CIPFA. You’ve spoken to other the new CIMA syllabus comprises 16 exams
accountants and your manager at work to find (depending on exemptions), three of which
that the only qualification that they recommend are case studies. While the case studies can
is of course, their own! only be sat quarterly, the remaining 13 exams
Unless you secure a training contract with are on demand, giving you greater flexibility
one of the Big 4, your most likely choice will about when to study.
be between ACCA or CIMA. Each is a well- ACCA has 13 exams (depending on
respected professional qualification that will exemptions) which, from September 2020,
boost your earning potential and be highly will all be computerised. With the exception
regarded in the UK and overseas job markets. of the first four papers, these exams can
So how do you make that choice? only be sat quarterly, giving structure to your
accounting forming core parts.
You will find both management and
financial accounting modules within the
ACCA qualification and more technical
aspects of accountancy. Unlike CIMA, your
exams will include both audit and assurance
and taxation modules, which offer the
potential to specialise in the future.
It is a difficult choice. “I wanted to be
able to add value to the existing figures with
meaningful analysis and new ideas,” said
CIMA qualified Sam Humphreys (Financial
Controller, Oxfordshire E-commerce).
Whereas Jack Strudley (Financial Accountant,
Oxford Sciences Innovation plc) felt: “ACCA
would give me the opportunity to become a
more versatile professional with exposure to
all aspects of accounting.”
Whichever qualification route you choose,
you will be embarking on a challenging path,
but the financial and personal rewards will be
immense.
• Liz Hulls is a director and tutor at Vale
Financial Training

PQ with AAT, ACCA, ICAEW

or CIMA? Why wait?
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call ICB HQ on 0203 405 4000 and quote ICBPQ The Institute of
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PQ Magazine July 2020 29

PQ AAT
the qualification
Keeping a ‘level’
head with the AAT
Andrew Taras describes his AAT experience via distance learning
aving started his accountancy
H distance learning training two years
ago, Andrew Taras recently began
the Professional Diploma in Accounting,
‘ position in London, where my job
the final step in his AAT progression.
That journey has seen him complete the
Level 1 Access Award, Level 2 Foundation
Certificate in Accounting and Level 3
Advanced Diploma in Accounting – all with
Premier Training.
Here, Andrew reflects on his progress,
which has enabled him to gain promotions,
increase his salary and target a career in
chartered accountancy…
Award-winning AAT courses
and apprenticeships
Flexible learning to suit your lifestyle
mindful-education.co.uk/students
30
which could then lead me onto further
qualifications.
I thoroughly enjoyed the Level 1 Access
Award and, upon completion, it solidified the
plan I had before undertaking the course - to
continue with a career in accountancy. I made
it my goal to become MAAT qualified by the
age of 30.
My intention when starting my Level 2
in Accountancy was to go on to be Level 4
qualified and at a high pass rate. I wanted to
be achieving distinctions or high merits at least,
to prove to myself that I was not only getting
qualified but understanding the material to a
high level.
The qualifications have allowed me to obtain
two promotions and three pay rises since
embarking on a career in the accounting industry.
I moved from property management
accounts assistant to assistant accountant with
my previous employer and since December
2019 I have undertaken a new role as a trainee
accountant at a local chartered accountancy.
In my new job, my qualifications have
allowed me to proficiently undertake more
extensive duties, which include accounts
preparation, payroll, bookkeeping, audit work,
self-assessment and VAT returns.
Upon completing my Level 3 in Accountancy
I got an immediate pay rise, which would
not have been possible without gaining the
qualification. My qualifications have also
allowed clients to feel more confident in my
decisions and work, as they know that I am
qualified to a specific standard.
Once I have finished AAT – which I hope
to do by this time next year – I will be moving
onto chartered accountancy with my current
employer. They have advised that they will fully
fund my course, which they have already
started doing with AAT Level 4, so that’s
great for me and my future!
I was working in a junior credit control
role focused on simple credit control
tasks and debt collection. At the time I had
no understanding about what a career in
accountancy or finance was like and had
limited knowledge in the field.
When I relocated to Cleethorpes in
Lincolnshire I treated it as a fresh start
and decided to fully jump into a career
in accountancy, specifically with the aim
of going as high as I could go. I started
with Level 1 as I wanted to see if I enjoyed
the ‘basic’ principles of bookkeeping,
PQ Magazine July 2020
HM Enquiries

RC & Powers

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PQ jobs pqjobs.co.uk

Becky’s story
PQ magazine chats to recently qualified ACCA Becky Hennessey
about her journey, and asks if she has any tips for fellow travellers
ecky Hennessey’s LinkedIn profile
B says it all. She is “an adaptable,
resourceful and enthusiastic
accountant” who is now both AAT (fellow
member) and just recently ACCA qualified.
We can confirm she is all those things.
PQ magazine first came across her when
she created the UK ACCA Distance Learning
Students Group on Facebook in September
2014. The group even has a PQ magazine
trophy to its name; it picked up the Editor’s
award in 2019.
But, let’s let her tell her story…
Hello, I am an ACCA member who has
‘ just qualified after five years of studying
ACCA. To tell you the truth, it has been
a journey of ups and downs throughout. If you
are a student just starting out, on your ACCA
journey it is difficult, but I can assure you it
is totally worth the time and effort at the end.
The hard part of the ACCA journey is to open
the book!
I attended university but did not finish my
course for various reasons. After feeling a bit
lost I did AAT and then ACCA.
While many of my friends had been
PQ Magazine July 2020
awarded exemptions on
ACCA, I was starting again.
It was disheartening, but
also exciting to embark
I have sat on the beach
with my study books, on this journey and received
on something new. I was
lucky to get a temporary job trains/planes/buses,
during the summer after
leaving university that gave
at a concert a few
me a lot of exposure to before the exam
accounting and operational
issues. It was a business
that had been through a takeover and had
joined a new group; I was left with eight boxes lockdown has finished!
of paperwork, a copy of the Sage accounts
and six members of staff – none who were
involved in the finance or operations, so I hit
the ground running. This role enabled me to
study AAT in the evening and allowed me the
seek progression to other roles.
It’s not a race
Studying ACCA is not a race. I received a few
fails along the way and I am proud to admit
I was not defeated. A Henry Ford quote has
always stuck with me – “Failure is simply the
opportunity to begin again, this time more
profile PQ
intelligently”. The ACCA exams are as much
about approach as providing an answer.
Studying while working full time, and having
other commitments, is difficult and can be a
lonely journey if you do not know anyone else
studying the course. It is also difficult to fit
exams in, while doing a busy month end and
working crazy hours.
I set up the ACCA Distance Learning
Students group on Facebook in September
2014. As I was studying at home I didn’t
have any contact with fellow students, and it
provided a perfect platform to share questions
– and get some answers! The group has now
grown to over 2,400 members, and I have
seen fellow travellers gain qualifications,
joined in their success, helping to motivate
others to ‘get qualified’.
Life’s ups and downs
Families do not understand the pressures that
students put on themselves. We often miss out
on events and family time to study. The most
heard quote is, ‘you will be fine’; but secretly
you are in a panic and feel guilty you are not
studying.
I have sat on the beach with my study
books, on trains/planes/buses, at a concert a
few days before the exam – torn between not
missing out and putting in the hard work. The
best comfort is to see, via the Facebook group,
that you are not on your own. There are many
other students who feel the same!
This journey has not always had a positive
impact on my mental health, and sometimes
I have felt isolated. I am pleased to see this
has now been recognised as an issue and
many accountancy bodies are now providing
wellbeing support.
The highs on this journey have been winning
a PQ magazine editor’s award for the Facebook
group, being invited to observe on an ACCA
members panel (an honour as a student), and
also to work with ACCA to give feedback on
student views. The biggest high, though, has
to be receiving that last result to say you have
finished!
I’ve met some fantastic
people and made friends on
some amazing support from
tutors and work colleagues,
both past and present.
days I am looking forward to
seeing ACCA from the
other side of the fence and
what opportunities it may
bring in the future, as well as celebrating once
Some final advice
ACCA is a professional qualification. It takes
hours of commitment, sometimes sleepless
nights, and it will be a rollercoaster of emotion.
If you are able to plan to study effectively, lean
on study support networks, be honest with
yourself and look after yourself mentally.
And remember, it’s not a race to
the finish line – you will be able to
achieve ACCA status!
• Becky Hennessey is a management
accountant at Coventry University.
33
PQ Derby County - a financial case study
The true price of £ootball
Kieran Maguire looks at how one top football club, Derby County, changed its accounting practices to
make things look better off the pitch
erby County Football Club was incorporated in 1896. It has
D detailed the accounts of this fine club ever since. Anyone who
has been to Derby for a match will tell you it has traditionally been
a great day out for away fans, either at their former home, the Baseball
Ground, or at Pride Park, where locals call everyone “duck”, which is
endearing if a little odd. In September 2015 Derby County Football Club
Limited were acquired by SevCo 5112 Limited, a company set up by
local businessman Mel Morris when he bought the club from its previous
owners. SevCo 5112 Limited’s accounts for the first year of trading were
for the 12 months to 31 August 2016, which is perfectly acceptable. It did
mean that including the results for Derby County Football Club Limited was
a bit tricky, as Derby’s accounts were to the year ended 30 June 2016.
Under the new regime Derby invested heavily in players in 2015/16,
spending £26.6 million. Manager Paul Clement was sacked by Morris
in February 2016 for not playing football “the Derby way”, and the club
missed out on promotion to the Premier League after being eliminated
in the play-offs by Hull City. On 28 March 2018 the club, via the official
website, published the following press release:
“Derby County have today announced their financial results for
2016/17 season. Reporting another record turnover and more strategic
investment on the playing side, operating functions and infrastructure of
the club… The financial year 1 July 2016 to 30 June 2017 saw a best-ever
Championship turnover (in non-parachute years) of £29m, up £6.4m on
the previous year… The signing of players including Matej Vydra, David
Nugent and Ikechi Anya were made during… the year… the sales of Jeff
Hendrick, Lee Grant, Will Hughes and Tom Ince in this financial year
contributed to a profit on player registrations of £16.2m… Total staff costs
across the Clun rose from £33.1m to £34.6m… The overall result was a
loss of £7.9m in the financial year, compared to £14.7m in the previous
year.”
The website did not, unlike the approach taken by other clubs, publish
the accounts themselves. The local media summarised the press release in
an article and as the results seemed an improvement on the previous year,
there seemed little to get excited about, so everyone lost interest quickly.
On 6 April 2018 the accounts of Derby County Football Club Limited were
34
submitted to Companies House. When compared to the press release, a
detailed analysis of the accounts revealed, as C&C Music Factory used
to sign: “Things that make you go hmmm…”. The income total had
indeed increased by £6.4 million (an impressive 29%) compared to the
comparative figures for the previous year, and the wages figure by a far
more moderate 4 per cent. On the face of things this looked as if the club
had controlled costs well for the year.
The wages note also revealed that the average number of employees
at the club had plummeted from 251 to 152, which seems strange given
the club had not changed its activities in the year and so it seems difficult
to justify a 40 per cent reduction in staffing levels. In the strategic report
there was reference to companies called “Club DCFC Limited” and
“Stadia DCFC Limited”, but no reference to how many, if any, jobs were
transferred to these companies.
The profit and loss account did show a loss of £7.9 million for 2017 as
per the press release. The loss shown, however, was after players sales,
which are volatile and unpredictable. The operating loss for Derby was
over £23 million. The Debry press release referred to the sale of Tom Ince
and Will Hughes as being included in the profit on the sale in the year
ended 30 June 2017. The excellent Hughes was sold on 24 June 2017
for an estimated £8m to Premier League Watford, a transaction perhaps
accelerated to book a decent profit in the 2017 P&L account. Ince,
however, was not sold by Derby until 5 July 2017. Some would argue that
the profit on the sale should therefore be delayed until the year ended 30
June 2018, although the accounting rules here are ambiguous.
Another figure that looked unusual was that of player amortisation,
which if you recall is the price of a transfer fee spread over the contract
life. Derby spent £51 million on players in 2016 and 2017 according to the
accounts, yet the amortisation charge in 2017 was only £5.1 million. Until
2015, Derby’s accounting policy in respect of transfers was identical to that
of all other clubs:
“Amounts paid to third parties for players’ registrations, Football League
levies, agents’ commissions and compenstation for management and
coaching staff are capitalised as intangible assets and amortised on a
straight line basis over the period of the players’ or other employees’
PQ Magazine July 2020

contracts. Players’ registrations are written down for impairment when the
carrying amount exceeds the amount recoverable through use or sale.”
(Derby County FC)
But the club then changed its policy to the following:
“The costs associated with acquiring players’ registrations, inclusive
of EFL levies, or expanding their contracts, including agent fees, are
capitalised and amortised over the period of the respective players’
contracts after consideration of their residual values.” (Derby County FC)
It may not look a significant difference, but the key words are the
final ones “amortised over the period of the respective players’ contracts
after consideration of their residual values.” Under such a policy a club
has the opportunity to be creative with the figures to reduce the annual
amortisation charge and so perhaps comply with FFP rules.
Consider the following: Fulchester Rovers signs a player for £12 million
on a four-year contract. Most clubs would therefore have an annual
depreciation charge of £3 million a year. If the club however allocates
a residual value of the player (residual value is the expected value of
the player at the end of the contract) of say £8 million, then the annual
amortisation charge falls to £1 million a year (£12m - £8m)/4). This would
boost profit or reduce losses by £2 million in a year.
The amortisation charge as a proportion of the average cost of players
at the start and end of the year for 2016/17 shows Derby County on 11%
at one end of the table and Barnsley at the other on 63%. A low figure
means that amortisation is only a small fraction of the cost of the players
and therefore has a relatively smaller impact on profits and losses. Derby
County have by far the lowest amortisation percentage in the division for
2016/17. Two years earlier, when their accounting policy was the same
as for all other clubs, the figure was 29%, much closer to the divisional
average. If the figures are inverted it means that Derby are effectively
amortising their player signings over nine years (1/11%).
A look at the accounting rules on the topic (Financial Reporting
Standard FRS 102) per the Institute of Chartered Accountants in England
and Wales shows the following:
FRS 102.18.23 states that the residual value of an intangible asset must
be nil unless either:
PQ Magazine July 2020
Derby County - a financial case study PQ
• A third party has committed to purchase the asset at the end of its
useful life, or
• There is an active market for the asset from which the residual value
can be determined and which is probable that such a market will be in
existence at the end of the asset’s useful life.
The rule would appear to suggest that Derby should not be using residual
values for players income unless:
a. Derby have a third party committed to buying the player at the end
of his useful life. This sounds reasonable, but surely at the end of a
player’s contract he is entitled to a Bosman transfer and so there would
be no residual value, or
b. There is an active market for the asset. An active market is defined by
accountants as “a market in which transactions for the asset take place
with sufficient frequency and volume to provide pricing information on
an ongoing basis”.
The problem here is that when dealing with individual footballers, they
are not being transferred on a frequent basis or at volume. There is, after
all, as Derby fans occasionally sing, only one Bradley Johnson, and as
such there is not a set price for his registration. A football registration is
not the same as the value of a barrel of oil or a taxi licence for a city where
the value of the asset is identical. It would therefore appear that Derby’s
approach is inconsistent with the rules. This doesn’t mean the club is
wilfully doing something wrong, but the opportunity to reduce amortisation
charges to comply with FFP limits is amplified.
So, what about the change in employee numbers? A few days after
Derby County Football Club Limited submitted its accounts for 2016/17,
SevCo 5112 Ltd did the same. SevCo 5112’s accounts were for the 10
months to 30 June 2017. This appears logical as it ties in with the football
club’s year end. SevCo’s accounts showed that it now controlled a number
of companies that had been set up to operate the different activities of the
club.
This too is common in relation to the way that club activities are split up.
When it comes to wages and salaries, under accounting rules all subsidiary
company results (where the parent owns more than 50%) are added
to those of the parent. While it is unusual to separate out the academy
team activities from those of the first team (as SevCo does), setting up
a separate company to do this is perfectly legal and would give Derby’s
owners a better indication of the cost of running the academy.
It therefore appears, rather than Derby employing fewer staff than
the previous year, as had been indicated by the Derby County Limited
accounts, employee numbers overall had in fact increased in 2016/17.
Wages cost did fall for SevCo 5112 by nearly 7 per cent to £33.2 million.
This, however, only covers a ten-month accounting period. If the figures
are pro-rated upwards by multiplying by 12/10 it gives £39.8 million, an
increase of 12 per cent over the previous year, much higher than the 4
per cent figure shown in the press release. While Derby and SevCo 5112’s
activities are within the law, in terms of being open and transparent the
approach is at best described as muddying the waters. Derby will no doubt
claim there are legitimate business, operational and tax reasons for the
new set up of companies within the group and if so, that is perfectly logical
restructuring. What rests less comfortably is the nature of the press release
at an earlier date that paints a rosier picture of the club finances than
might otherwise be the case. The club can argue that they are under no
obligation to make the life of an analyst easy, but being obtuse only makes
anyone with a curious mind want to look a bit closer, although the majority
of fans won’t care an iota as long as the club is winning and compliant
with FFP.
The following season Derby’s results also caused concerned as it
posted an initial loss before interest of just over £1 million, which seems
very modest by Championship standards, but a couple of lines above the
figure is £39.9 million of “profit on disposal of tangible assets”. Further
investigation reveals that this was the sale of the club’s stadium Pride
Park, to another company controlled by the club owner, Mel Morris.
There is nothing illegal in such a transaction but without it the club may
have almost certainly exceeded allowable Profitability and Sustainability
loss limits and may have been subject to a points deduction the following
season.
An understanding of the basics of a set of accounts is of benefit for
anyone who wants to analyse the finances of an individual club or division
in a league. Some clubs produce excellent summaries of financial data,
with Juventus perhaps producing the most detailed of any club in terms of
information about players, It is, however, concerning that too many clubs
35
PQ Derby County - a financial case study

use creative accounting, legal loopholes, delaying tactics and sleight of DERBY COUNTY FC PROFIT & LOSS ACCOUNT, 2017
hand when reporting their financial affairs, as this only reinforces the view 2017 2016
held by many fans that some club owners are acting in their own interests
£ £
rather than for long-term benefit of the fans and local community.
Revenue 29,029,577 22,558,821
SUBSIDIARY UNDERTAKINGS OF SEVCO 5112 LTD
Direct operating costs (35,261,413) (35,003,199)
Name Principle activity
SEVCO 5113 Limited Intermediate holding company Gross loss (6,231,836) (12,444,378)

Global Derby (UK) Limited Intermediate holding company Administration expenses (12,003,888) (11,608,379)
Gellaw 101 Limited Intermediate holding company Amortisation of players’ (5,041,196) (3,370,103)
Derby County Football Club Ltd Players activities of a professional football club registrations, and associated costs
Club DCFC Limited Event and catering activities Operating loss (23,276,920) (27,422,860)
Stadia DCFC Limited Sponsorship and broadcasting Profit or disposal of players’ 16,154,429 199,661
The Derby County FC Academy Ltd Playing activities of a professional Football club registrations, levies and ass. cost
Derby County Stadium Limited Exception operating cost – 12,433,568
DCFC Limited Dormant Loss on ordinary activities before (7,122,491) (14,789,631)
(all companies: Class of shares - Ordinary, Holding - 100%) interest
Source: SevCo 5112 Ltd Interest receivable & similar – 64,278
income
SEVCO 5112 MONTHLY NUMBER OF EMPLOYEES 2017
2017 2016 Interest payable & expenses (750,224) –

Players & apprentices 69 62 Loss before tax (7,872,715) (14,725,353)

Management & coaching 77 75 Tax on loss – –
Groundsmen, kitchen & cleaning 20 19 Loss for the financial year (7,872,715) (14,725,353)
Administration and marketing 117 109
Source: Derby County Football Club Limited
283 265
This is an extract from Kieran Maguire’s fantastic book ‘The Price of
In addition to the above the Group employs on average 252 (2016 £ootball’. To order a copy of Kieran’s book go to: https://www.agendapub.
-282) casual matchday staff at a total cost of £413,055 (2016: com/books/33/the-price-of-football
£455,935) • Kieran Maguire is a Senior Teacher in Accountancy at the University
Source: SevCo 5122 Ltd annual report of Liverpool

Try our football finance quiz

1: Which club in the Premier League made A: Aston Villa B: £2.62
the highest operating profit (excluding player B: Rotherham United C: £29.48
sales) in 2018/19? C: Leeds United D: £8.48
A: Manchester United D: Millwall
B: Liverpool 8: Which club was top of the 2020 Deloitte
C: Spurs 5: Which club paid a player’s mother Money League?
D: Chelsea £700,000 to be an academy scout? A: Real Madrid
A: Manchester City B: Barcelona
2: Which club is sponsored by a taxi company B: Chelsea C: Bayern Munich
that owns no taxis? C: Derby County
D: Manchester United
A: Aston Villa D: Birmingham City
B: Leeds United 9: Which club has made the most profit
C: Brentford 6: What is the maximum loss allowed in the
before tax in Premier League history?
D: Sheffield Wednesday Championship over a three year period under
A: Arsenal
Profitability & Sustainability (Financial Fair
B: Spurs
3: How much interest have West Ham owners Play) rules?
charged the club on their loans? A: £39 million C: Manchester United
A: £1.9million B: £15 million D: Liverpool
B: £6.4million C: £105 million
C: £12.7 million D: £52 million 10: Which Championship club paid £226 in
D: £18.7 million wages for every £100 of income in 2018/19?
7: What was the total lowest overall cost to A: Birmingham City
4: Which club had the highest operating buy tickets to see all of England’s games in B: Aston Villa
profits (excluding player sales) in the the 1966 FIFA World Cup? C: Reading
Championship in 2018/19? A: £15.10 D: Wolverhampton Wanderers
1. C • 2. D • 3. D • 4. B • 5. C • 6. A • 7. B • 8. B • 9. A • 10. C
Answers

36 PQ Magazine July 2020


Lockdown takes its toll
Wellbeing has dropped dramatically among PQs, according to a
new survey from Hays. Karen Young explains all
ellbeing among UK workers has
W taken a hit during the Covid-19
crisis, as businesses and staff
across industries grapple with extraordinary
change and ongoing uncertainty.
PQs are no exception to this, as findings from
the new Hays Wellbeing Matters report bring to
light a deteriorating picture of wellbeing among
part qualified accountants. With particular focus
on work-life balance and mental health, here’s
what this picture looks like and what employers
of finance professionals can do to improve
wellbeing all round.
Wellbeing takes nosedive
Since lockdown restrictions were enforced
earlier this year and many PQs started working
remotely, wellbeing has taken a tumble,
according to findings in the report. Almost two-
thirds (62%) of PQs rated their wellbeing positive
before lockdown restrictions, which dropped to
just 33% since the lockdown has been in place.
Furthermore, those who rated their wellbeing as
negative rose from 6% to 27%.
Clearly being under lockdown and having
to work remotely is taking its toll on PQs.
Accountancy is predominately traditionally
an office, desk-based job, so shifting from
this to remote working arrangement is a huge
adjustment that many have had to make in an
unexpectedly short amount of time.
There are many reasons why wellbeing has
suffered during lockdown, but the most common
answer given by PQs was a lack of social
PQ Magazine July 2020
interaction (cited by 27%), followed by feelings
of isolation and loneliness (13%). An increase in
workload (11%) and boredom (10%) were also
factors.
Work-life balance under the spotlight
Work-life balance is important to those in this
profession; interestingly, it has increased in
importance for more than two in five (43%) PQs
since lockdown began. But despite this, over
half (52%) rate their work-life balance between
average and poor. While the recent passing of
the tax year is a demanding time for some PQs
and certainly won’t have eased any strained
workloads, clearly work-life balance is an issue
which needs addressing when it comes to
wellbeing.
In tandem with this, mental health is also
under the spotlight as an element of wellbeing
which has been impacted by the current
environment. Adequate mental health support
from an employer has also grown in importance
since lockdown (according to 46% of PQs). As
we were reminded in Mental Health Awareness
Week in May, it’s vital that we comprehend
how to maintain good mental health now more
than ever, as it feeds so directly into overall
wellbeing.
PQs look to employers for support
What role do employers play in the maintenance
of wellbeing, work-life balance and mental health
among PQs? What responsibility do they have
and how can they best support professionals
wellbeing PQ
feeling the effects of lockdown?
Almost three-quarters (71%) of PQs say their
employer has a responsibility to look after their
wellbeing, yet over half (53%) state that their
employer hasn’t provided any wellbeing support
during the lockdown. This isn’t the case across
the board, however – as of those who said their
employer was providing support, close to a fifth
(15%) said their employer is offering social
activities, followed by counselling (12%) and
health (such as an online doctor, also 12%).
These steps are encouraging and it’s positive
that professionals are looking to their employers
for support during this time. However, to
improve wellbeing among PQs, employers could
go to greater lengths by putting some of the
following measures in place:
• Assess the impact lockdown has had on staff
wellbeing through one-to-one interviews or
short surveys.
• Schedule in more regular video
communication with teams both for business
updates and socialising.
• Be flexible with schedules and expectations.
• Offer wellbeing training and resources which
are easily accessible by all.
The wellbeing of staff needs to be a top
priority for all employers as the impact of the
virus is felt on our personal and professional
lives. Although everyone’s experience and
situation will be unique, it’s important that steps
are taken by employers to support their staff no
matter where they’re working and help them
maintain wellbeing in what is a challenging time
for us all.
• Karen Young, Director of Hays Accountancy
& Finance
37
PQ CIPFA spotlight
Tomorrow’s public finance
leaders will pave the way
Rob Whiteman explains how you can take small steps to develop the
skills you need to become leadership material
here are
T significant
challenges facing
the public sector in the
years to come. Meeting
these challenges head
on requires us to ensure
that the aspiring leaders
of tomorrow have the
skills they need to tackle
anything that may arise.
Even though tomorrow may look grim,
focusing on leadership skills for students and
employees is a necessary step to making sure
that organisations will flourish in the future
regardless of the current uncertainty.
Not everyone is born with the skills or
confidence to be a natural leader. In fact, when
I was beginning my career becoming a chief
executive was the farthest thing from my mind.
But don’t fret, I know first-hand that leaders can
be created and developed through training and
practice.
Some people seem to adopt a leadership role
very naturally, whether in the work environment
or in social situations. We can all learn from
watching these people, but it’s important to
remember that styles of leadership vary and
that an individual can adopt different leadership
styles depending on the context and their own
personality.
38
Where a decision has to be made that needs
buy-in and input from an entire team, then a
consultative approach is appropriate. However,
if there’s a fire in the room, you want someone
to take control and tell everyone to get out. Very
different styles, but both are forms of leadership.
Learning about leadership begins with
watching those around you. Observing others
in leadership roles is one of the best ways to
find out what leadership styles can be used.
Think of your line manager at work. What kind
of style do they use? Do they involve everyone
in decision making, or only certain people?
How does it make you feel if you are not one
of those people? How does it make you feel if
you are? Thinking about this means you are
considering the impact of the leader on the
individual, which is something to bear in mind
when you are in a leadership role. Leadership is
not only about tasks and outcomes, but about
people.
If you have the ability to do so, start by
shadowing leaders in your organisation. Students
will benefit from shadowing their Executive
Director or CEO for a day. It gives an insight into
the different tasks and requirements of the role
and how leadership can vary from task to task,
or meeting to meeting. Ask if this is something
that could be offered – even during the current
time when we are working remotely. Being
present during online meetings can still provide
good insight into how different leaders in your
organisation operate.
Can you ask to be given some experience
in leading a small project? The opportunity to
develop your own leadership skills will help
you work out what you find easy and what you
find more challenging. Ask for feedback on
your performance and be prepared to hear
both positive and negative comments. Every
good leader needs people to give honest
feedback and a great leader will listen to it
and act on it.
Think of what you can do outside of work –
are there committees you can join where you
can develop some leadership skills? Even the
smallest of groups can offer experience that will
stand you in good stead for the future.
You can also learn leadership theories from
textbooks. There are countless resources
available online to help you learn the theory. It’s
putting the theory into practice and being willing
to respond and change your approach that
truly helps you develop your leadership skills.
Learn from others and then, when you are an
experienced and respected leader, others can
learn from you.
The road ahead looks rocky and full of
uncertainty, but one thing that we do know is
that today’s students will become tomorrow’s
leaders. Taking control of your leadership
training will help you take on any challenge that
comes your way – to the benefit of not only your
organisations, but the public sector and the
wider country.
• Rob Whiteman, CIPFA CEO
PQ Magazine July 2020
 break-even analysis PQ

Finding the edge

This introduction to this technique will be of interest to Level 3 students and those on the Accounting
Apprenticeship Programme – Assistant Accountant, says Philip Dunn
Output 3,000 4,000 5,000
£ £ £
Sales revenue 240,000 320,000 400,000
Less variable costs 120,000 160,000 200,000
Contribution 120,000 160,000 200,000
Fixed costs 60,000 60,000 60,000
Profit/(loss) £60,000 £100,000 £140,000

A question often asked by management is at what level does the business

break-even?
From the flexible budget report we can determine the volume of output
at which the business breaks even and calculate the margin of safety at
an output of 5,000 units that being the target output for the quarter set by
management.

Contribution per unit of output:

£
Selling Price 80
Variable Costs 40
Contribution per unit 40
rainee accountants, accounting technicians and certified

T bookkeepers prepare management information on a regular basis

in the form of management accounting reports, and have in their
financial vocabulary an array of terminology that is included in such reports
• Break-even point in units
Fixed costs/Contribution per unit
£60,000/£40 = 1,500 units or 30% of output
to aid their relevance to managers.
Break-even analysis is a management accounting technique that relies • Break-even in sales revenue
heavily on the concept of marginal costing that classifies cost as either Fixed costs/ (Contribution/sales)
fixed or variable in a range of decision-making aids to management. £60,000/ (£200,000/£400,000)
The terminology embedded in break-even analysis includes: £120,000 (1,500 x £80)
• Variable cost.
• Fixed cost.
• Contribution (sales revenue less variable costs). • Margin of safety
• Break-even point. 5,000 units less 1,500 units = 3,500 units or 70% of output
• Margin of safety. Sales revenue £400,000 less £120,000 = £280,000 (3,500 x £80)
The above calculations of the margin of safety are expressed in both
Definitions units and sales revenue.
• Variable cost: one which will increase or decrease in line with the
volume of output. The table below shows the margin of safety at the varying levels of output:
• Fixed cost: one which will remain constant irrespective of the volume of Output units 3,000 4,000 5,000
output.
• Contribution: the excess of sales (revenue) over variable cost. This may Break-even point (units) 1,500 1,500 1,500
be expressed in total and or per unit of output. % of output at break-even 50% 37.5% 30%
• Break-even point: that point at which total contribution is equal to total
Margin of safety (units) 1,500 2,500 3,500
fixed costs and neither a profit nor loss is made.
It is expressed in units as: % Margin of safety 50% 62.5% 70%
Fixed costs/contribution per unit
Or in ‘£’ value of sales as:
Conclusion
Fixed costs/ (contribution/sales)
NB: Contribution/sales is referred to as the profit volume ratio. The business has a relatively low level of break-even (30%) of output
• Margin of safety: This can be expressed in terms of sales revenue or based on a budget of 5,000 units and thus has a high margin of safety and
number of units. It is the excess of sales revenue over the break-even if this can be achieved it would yield a net profit to sales ratio of 35%.
point in sales revenue or the excess of units of output over those at the Such information is vital to management in the control of resources and
point of break-even and is usually expressed as a percentage. is of particular relevance in periods of downturn in the volume of business
Mini case study: as with the current situation on a global scale. The management need to
Dunn Strike is an SME and manufactures a high-quality cricket ball. know at what capacity the business would break-even or what the losses
The flexible budget for three months ended March 2020 showed: would be at volumes of output below the break-even point.

PQ Magazine July 2020 39

PQ CIMA
the exams
No place like home
Stephen Flatman has some top tips on successfully sitting your CIMA exam at home
he Covid-19 lockdown meant CIMA
T could no longer offer exams at our test
centres around the world, but for us it
was essential to support our students and help
them keep their careers moving.
That’s why we worked with our partners to
set up a remote exam testing system from the
outset of the pandemic. We started delivering
remote exams in May, and so far students in
over 70 countries have sat CIMA exams at
home.
As national lockdowns are starting to lift
exam centres are slowly re-opening, giving
you the option to choose the exam delivery
format that best suits you, whether that’s a test
centre or your home. As Covid-19 continues
to disrupt the world for the foreseeable future,
we recommend that you continue to book your
exam in advance where possible.
We know this can be an unsettling situation
so I’d like to share some tips with you here
about what to expect when taking your CIMA
exam remotely.
Cancel any pre-booked test centre exam
1 before attempting to book a remote exam:
You won’t be able to book at-home exams until
you do so and you’ll need to allow 48 hours
before booking your next exam online. Make
sure you plan ahead so that you can fit your
revision timetable to your exam date. Booking
well in advance also means you’re more likely
to be able to get your preferred timeslot.
40
Make sure you have the right equipment:
2 You’ll be asked to test your set up first to
make sure you’ll be able to take your exams
remotely:
• A reliable device with a webcam and
microphone – recommended software is
Windows 10.
• A strong internet connection.
• A smartphone.
Make sure you have a quiet location to
3 sit your exam in before the exam: On the
day, make sure you set up the room correctly –
ensure the lighting and heating are right.
Remind your friends and family not to call
you because you’ll need to keep your phone
line free in case the invigilator needs to call. If
someone who isn’t the invigilator calls you, that
may trigger a call from the actual invigilator and
your exam may be terminated.
Your exam will be recorded so you’ll need to
give permission for that. This also means you
should keep the area around you clear of any
distracting photos and pictures.
• 60 minutes before the exam, make sure
you are physically, mentally and emotionally
ready. Close your eyes and take a few deep
breaths to improve your concentration and
focus. That’s particularly important as you’re
not in a controlled test centre.
• 45 minutes before the exam, click on the
link in your confirmation email. Take six
photos: yourself, your ID and four photos
of your room. You’ll be sent a link to your
mobile number to upload these.
We also have a step-by-step guide available
on My CIMA.
During the exam: You’re not allowed to leave
4 your workspace so remember to prepare
accordingly, including having a drink next to you
in a clear bottle or glass, for example.
If you have any problems you can raise your
hand via the online platform to speak to your
invigilator.
Don’t worry if you have connection issues,
we know these things can happen, so we have
support for you if they do. Keep your phone
on throughout, though on vibrate or silent
mode so the invigilator can call you if you lose
connection.
After the exam: Take a deep breath and
5 relax, you’ve done the hardest part.
Your Objective Test and Certificate in
Business Accounting exam results will be
available 48 hours after your exam. For Case
Study exam results, you will have to wait for six
to eight weeks.
For more information visit https://www.
cimaglobal.com/Studying/Student-Coronavirus-
COVID-19-exam-FAQs/
• Stephen Flatman, Vice President,
Examinations, Management Accounting,
The Association of International Certified
Professional Accountants
PQ Magazine July 2020

Call of duty – times seven
The IOD’s Roger Barker has helped Companies House to post
about the role of a company director. So what are the legal duties
associated with being a director in the UK?
The company constitution
The first of these duties is that a director must
act within their powers under the company’s
constitution. The most important part of
the company’s constitution is the articles of
association. These are an important set of rules
for your company and for your board.
When you registered the company, you may
have used the model article available for private
or public companies. Alternatively, you may have
created your own tailored articles, normally with
the help of a legal advisor.
As a director, it’s important to be familiar with
the articles of association as they may constrain
your decision-making powers in certain ways. If
you exceed your powers, then related decisions
could be reversed and you might even have
to compensate the company for any resulting
financial losses.
Promoting the success of the company
The second major duty of a company director
is to promote the success of the company. This
is probably the most well-known of the seven
duties.
From the beginning of 2019, a new reporting
requirement means that larger companies (with
more than 250 employees) will have to explain
how they have fulfilled this duty in their annual
report.
The duty states a director must act in a way
that they consider, in good faith, would be most
PQ Magazine July 2020
likely to promote the success of the company
for the benefit of its members (shareholders)
as a whole. When making decisions, directors
must also consider the likely consequences
for various stakeholders, including employees,
suppliers, customers and communities.
They should also consider the impact on the
environment, the reputation of the company,
company success in the longer term, and
all of the shareholders (including minority
shareholders).
A duty to promote the success of the
company may seem like an obvious task for a
director. However, it brings with it a number of
implications.
Board decisions can only be justified by the
best interests of the company, not on the basis
of what works best for anyone else, such as
particular executives, shareholders or other
business entities. But directors should be broad
minded in the way that they evaluate those
interests – paying regard to other stakeholders
rather than adopting a narrow financial
perspective.
Independent judgement
The third major duty requires directors to
exercise independent judgement. Directors are
meant to develop their own informed view on the
company’s activities.
Directors should not be delegates who simply
implement the commands of other parties
company directors PQ
(such as major shareholders). Nor should they
avoid their responsibility to make independent
decisions by relying on the knowledge or
judgement of other directors or experts.
A director needs to form their own view, and
this may require some effort – especially if they
are not already familiar with key aspects of the
company’s activities.
Exercise reasonable care, skill and diligence
There was a time when directors could be
appointed purely for their name or reputation,
without the expectation that they would actually
do any work as a board member. Those days are
now over due to the duty for directors to exercise
reasonable skill, care and diligence in their role.
The benchmark is that of a reasonably
diligent person with the general knowledge,
skill and experience that could reasonably
be expected from a person carrying out the
director’s functions. Also, directors with specific
professional training or skills (such as a lawyer
or accountant) are held to a higher standard in
related issues than less qualified colleagues.
Conflicts of interest and personal benefits
The remaining three legal duties relate to the
need for directors to avoid or manage conflicts of
interest which may affect their objectivity.
If situations arise which impose multiple
claims on a director’s attention or loyalty, it is
essential that they disclose them to fellow board
members. It will then be up to the other non-
conflicted board members (or the shareholders,
in some cases) to decide how to manage or
approve the conflict and maintain the integrity
of the board’s decision-making process.
Examples of conflicts of interest include
situations where the director has relationships
of a business or personal nature with persons
or entities that are affected by the company’s
activities. It could also relate to situations
where the director may be considering taking
advantage, on a personal basis, of property,
information or opportunity which belongs to the
company.
Gifts or benefits from third parties are also
a potential threat to a director’s objectivity.
Most importantly, directors have a statutory
duty to disclose any direct or indirect interest
in proposed or existing transactions or
arrangements with the company.
Keeping a record
How can a director prove they’ve fulfilled these
legal duties? One of the important purposes of
the minutes of board meetings is to provide a
record of the board’s decision-making process.
By law, these minutes must be kept for 10
years. Years from now, it may be difficult for
you to remember if you fulfilled your directors’
duties in respect of some key decision. The
minutes can provide vital evidence that you did
– something that you may well have cause to be
grateful for.
• Roger Barker is Head of Corporate
Governance at the Institute of Directors
41
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CIMA is in
safe hands
CIMA’s new President Nick Jackson
wants to see a change in the
definition of ‘value’
Finance professionals have a vital role
in making organisations stronger and
more resilient in the post Covid-19
world, according to incoming CIMA
President Nick Jackson. Acknowledging
the impact the pandemic is having he
said: “Although events like Covid-19
are thankfully rare on a global scale,
they do present opportunity to make
positive changes. We must be leaders
in showing that change is not
something to be afraid of.”
Jackson wants to see management
accountants deliver broader
stakeholder benefits that take into
account social, environmental and
economic value. The 87th CIMA
President emphasised that finance
professionals need to lead their
organisations towards the adoption of
more sustainable, responsible business
practices. Jackson stressed: “We have
Nick
Jackson
to move beyond simply providing
insight to the numbers, to bringing
more value through recommendations
and follow-up action. We need to
recognise that the success of a
business as exemplified by the figures
on a balance-sheet, have many other
elements – tangible and intangible.”
He pointed out that organisations’
operating models are made up of
people, processes and supply chains.
These exist in increasingly dynamic
environments and are answerable to a
much broader audience of customers,
suppliers and wider society, he said.
Graduating from Exeter University
with a degree in education, Jackson
became a CIMA member in 1992, and a
fellow in 2008. He was co-opted to
CIMA council in recognition of his role
in promoting the value of CIMA for
public sector financial professions
while at HM Treasury (it is where PQ
first met him!).
He currently works for software
technology company Oracle, which he
joined on 2016. His CV includes stints
at EY, Capgemini, the Ministry of
Justice and Ofsted.
PQ Magazine July 2020
Life at e-Careers
Civil engineering graduate Jazz Gandhum became the firm’s CEO when he acquired it in
2011. He won ‘Entrepreneur of the Year’ in 2017 at the Amazon Real Business Awards
and is also on the board of isotonic drinks firm iPro Sport.
What time does your alarm
go off on a working day? I
never have an alarm unless I have
a plane to catch! When I wake up,
I go to work. When I’ve had
enough, I come home.
What is the first thing you do
when you get to your desk?
Look at all the KPIs I set myself
for the month and see how far I
have got and how much more is
left to do. I also bombard the
team with all the to-dos from my
end, so it is the first thing they see
when they get into the office!
What’s on your desk? Just my
Apple Mac, wireless keyboard and
mouse and a bottle of water. I
hate paper on my desk – I always
find a reason why paper should
be on someone else’s desk!
What’s the best thing about
where you work? The team –
they are my family. We work, we
dream, so that we can all achieve
together.
Where’s your favourite place
In brief
‘Turnaround’ CFO to retire
Alan Stewart arrived at
Tesco when it was in the depths
of an accounting scandal, in
2014. The new CFO joined
straight from M&S, when Tesco
was going through one of the
biggest crises in its 101-year
history. In 2015 the company
recorded an annual loss of £6.4
billion – that’s one of the largest
in UK corporate history. Stewart
led the corporate restructuring,
rebuilt the balance sheet, and
guided Tesco “back to
The PQ Book Club: books you should read
The AI Book: The Artificial
Intelligence Handbook For
Investors, Entrepreneurs and
Fintech Visionaries (Wiley,
paperback and ebook £23.99)
This book follows a whole series
of best-selling titles, such as
The FINTECH Book and The
WEALTHTEC Book, and this one
looks set to be another winner.
The four authors (yes, it
seems a lot, but it works),
essentially explain the future of
the global financial industry.
This includes how leveraging AI
will extend investment
for lunch? At home with my
three-year-old daughter.
What can you see when you
sit at your desk? I have two
desks, one in a private office and
one on in the central hub with the
team. I spend 90% of my time at
my central hub desk – so I have
the team with me.
Which websites are your
favourites and why? I recently
started trading, so Yahoo Finance.
And BBC News and BBC Sport.
Which websites do you use
for work? We live and breathe
Salesforce.com.
How many hours a week do
you spend in meetings? A lot
of time.
What time do you leave the
office? When I have had enough!
How do you relax? I love
spending time with my family –
three young ones! We love cycling
and I am a football enthusiast – I
enjoy five-a-side as often as
possible.
investment grade”. He did this by
refocusing the business on its
core domestic market. Now move
forward to October 2019, and
Tesco unveiled a core profit of
£3 billion, the turnaround was
complete. So in June he
announced he was retiring and
would leave the company on
23 April 2021.
Apprenticeship ‘guarantee’
Young people have been
promised a ‘guaranteed’
apprenticeship to help improve
opportunities to more people
than ever before.
So, will AI give us utopian
perfection? Our experts say that
we are all going to need to be
much more knowledgeable.
There is an intellectual gap, and
this book goes some way to fill
that.
OK, the big question – who
will still have a job in 50 years?
We discover that the World
Economic Forum has said that
in the age of AI about 75
million jobs are set to
disappear, but on the plus side
careers PQ
What’s your favourite tipple?
A good smokey single malt.
How often do you take work
home with you? Never, but it’s
always in the back of the mind.
What is your favourite TV
show? Only Fools and Horses.
Summer or winter? I’m a big
fan of summer. I wish to emigrate
to Australia one day, due to the
endless summers!
Pub or club? Definitely the pub.
Conversation is important.
Who is your hero? Anyone who
has achieved financial freedom
through hard-work and following
the basic ethics, while still giving
vital time to their loved ones.
What is the first thing you are
going to do when lockdown is
over? Play football! Grab a Friday
pub lunch with my team, which
should drag into a late evening if
we play it right.
If you had a time machine
where would you go? Nowhere.
I’m content with what I have.
their job prospects in a post-
pandemic UK. Prime Minister
Boris Johnson is predicting that
there is going to be “many,
many” job losses as an inevitable
result of the lockdown. Speaking
at a recent Downing Street
briefing he said the government
would be more ‘interventionist’ to
support jobs. He stressed he
would be “investing in the UK
economy, investing in
infrastructure, taking our country
forward, so that we bounce back
sharply and decisively”.
some 113
million jobs
will be
created.
We really enjoyed the section
on the morality of AI. Samiran
Ghosh believes it is even
questionable whether we even
have a sound understanding of
morality that we all agree on. In
moral dilemmas human tend to
rely on gut feeling not elaborate
cost-benefit calculations.
PQ rating: 4/5 AI will be
running our lives before we
know it. Time to get educated.
43
PQ got
the a story, funny or serious, you want to share? Email graham@pqmagazine.com

A job too far

A recent book
Bored worker wins £45,000 on Facebook’s
Mark Zuckerberg
A French worker has won his claim that he had so little to revealed that a
do working for a luxury perfume maker it made him ill! The communications
landmark decision saw Frederic Dasnard awarded £45,000 in executive would often
damages, with the court ruling he had suffered from ‘bore-out’.
That’s the opposite to burn-out! Dasnard explained his job at
Interparfums was a “daily humiliation”, which led to a nervous
QUOTE UNQUOTE:
Villanelle in Killing Eve: “You are more boring than the
have to blow-dry
her boss’s armpits
to eliminate anxiety
breakdown and eventual dismissal. accountant I just killed and accountants are really boring.” sweat. He also
stipulated that the
Whistleblowing reward backstage areas at
speaking events had
Who said whistleblowing doesn’t pay? The
to be cooled to 15C
Securities and Exchange Commission recently
or lower. Another
announced an award of more than $27
Zuckerberg trait is
million to one whistleblower “who alerted
apparently the ‘cold
the agency to misconduct occurring, in part
stare’ that goes into
overseas”. Apparently, after providing the
a trance-like silence.
tip the Commission was able to advance a
Facebook’s Andrew
critical investigation. While this is the largest
Bosworth calls it the
whistleblower award this year to date it is only
‘Sauron’s gaze’, a
the sixth largest since the inception of the
reference to the Lord
Cyberscam students programme in 2012. The award takes the total
amount handed out to whistleblowers by the SEC
Pictures can sometimes say so
much more than words! (top
of the Rings. It has
There has been a surge in cyberattacks been suggested that
over the $400 million mark. cartoon from Private Eye)
since the pandemic began. Criminals gangs, Zuckerberg is thinking
mobsters and spies will be the top of most at such a high level
people’s list of culprits. But the experts have How to destroy your reputation that the world stops
said there is another key miscreant – bored He might have written ‘The Taxpayer Strikes Back’, but for him – right! I
students! The chief technology officer at that didn’t stop Martyn Arthur destroy his own reputation suppose it is all better
Cloudfare, John Graham-Cummings, said his and making himself “professionally worthless”. The former than the rumour that
company had seen hacks increase six-fold in Revenue man found himself in Cardiff Crown Court for Steve Jobs was ‘a bit
the UK. He explained: “A lot of students have attempting to cheat HMRC out of £120,000 of tax. He was smelly’. He apparently
been sent home, and probably among that found guilty of submitting inaccurate tax returns and was refused to wear
group are people who like to ‘recreationally given an 18-month prison sentence, suspended for 18 deodorant because
hack’… My guess is that a lot of people have months. Once he knew the investigators were on his trail he he believed it would
got time so they are seeing what websites became argumentative and difficult, but that didn’t work. interfere with his
they can break into.” Maybe there’s now time to add a new chapter to that book. health.

’
WEV E GOT THE L OT
Calling Dr Moore
We have three copies of Dr Gareth Moore’s ‘The
Mindfulness Puzzle Book’ to give away this month.
This is a wonderful collection of relaxing puzzles
to help you de-stress and unwind. It is reportedly
the first puzzle book designed specifically around
mindfulness. There are adult version of dot-to-
dots, mazes and even colouring and spot-the-
difference puzzles. What’s not to like.
To get the chance to win on of these great
books email ‘Mindfulness Puzzles’ to
giveaways@pqmagazine.com. Remember, we need your name and
address so we know where you want us to send the prize.
The Body Coach
Joe Wicks ‘Lean in 15’ is now a number-one
bestseller. If you haven’t got one on your
bookshelves never fear, we are giving you the
chance to enter the free draw to get your very
own copy. As it says on the cover, this book is
here to rescue you from depressing low-calorie
diets once and for all. There are 100 recipes
and guides to some high intensity training for
home.
We have three copies of this fantastic book
up for grabs. Email giveways@pqmagzine.com, heading it ‘Lean In 15’.
Three readers will be sent the Wicks bestseller.

Terms and conditions: One entry per giveaway please. You must send your name and address to be entered for the draw. All giveaway
entries must be received by Friday 3 July. The main draw will take place on Monday 6 July 2020.
TO ENTER THESE GIVEAWAYS EMAIL GIVEAWAYS@PQMAGAZINE.COM
44 PQ Magazine July 2020