21 september 2011

technical articles relevant to all students interview skills key preparation techniques

a womans world

global outlook

London College of Accountancy

education

LCA

Flexible...

A wide variety of professional and academic courses designed to be enhance your employability.

Affordable...
Competitive fees and flexible payment options.

High Quality Education.

Exceptional teaching staff that will help you achieve the internationally recognised ACCA qualification.

For more information visit: or contact us at: 19 Charterhouse Street, London, EC1N 6RA. UK.

www.londoncollege.org
+44 (0)20 7400 6789 info@londoncollege.org

editors choice
Welcome to the latest issue of Student Accountant. The glass ceiling may not yet be shattered, but in this issue we discover some encouraging signs that cracks, at least, may be forming, with an increasing number of women taking on accountancy roles that have been traditionally held by male colleagues. Research from the US Department of Labors Womens Bureau reveals that females are even beginning to dominate such roles in some areas. There is still a long way to go women still only account for just 12.5% of directors on the FTSE 100 company boards after all but with more employers offering flexible working arrangements for those with families, the coming decade could well see female accountants rise to numerical dominance. We also consider ways to better retain information and perform well in exams thanks to a bit of brain exercising, as well as providing some useful tips to give you the edge over other candidates in a job interview. New technical content includes articles on changes to the CAT Options papers following the launch of Foundations in Accountancy in December, interest rate risk management relevant to ACCA Qualification Paper P4 and auditors reports in the UK relevant to ACCA Qualification Paper P7 (UK). Were always keen to have your stories in the magazine. Ard forW Were particularly on the lookout for your ideas on how rES fEAtu to get the practical experience requirement for udEnt in St tAnt ACCA membership. Email your contact details to ccoun hATS A UT W FiND O OON TO studentaccountant@accaglobal.com and well be gS COmiN OF in touch. ES PAg NT Victoria Morgan Editor, Student Accountant magazine

T hE UNTA T ACCO iSSUE TUDEN S F ThiS E 20 O N pAg O

4 cOntents
dispatch
06 GrApHic neWs UK local government auditor appointments, Asia-pacific mergers booming, malaysias old-age problem and a profile of the typical fraudster 08 neWs rOUndUp Global finance and accounting news

features
18 A WOmAns WOrld We discover the countries and industries where women accountants are thriving in the greatest numbers. AleX miller reports 20 stUdent AccOUntAnt FeAtUre ArcHive We highlight important articles from recent issues of student Accountant

learning centre
10 member in 60 secOnds Alastair Goddin, UK 12 stUdy tips take your brain to the gym 14 cAreer sKills power up your interview prep 16 AccA cAreers your new job portal 17 WebWAtcH thinking of relocating?

Balancing act

How do you manage the work/study balance? let us know your top tips and you could be in a forthcoming sA feature. email us at studentaccountant@accaglobal.com

download article pdfs

Wherever you see the download icon , click on it to download a pdF file of the article which can be read offline and printed off to help you with your studies

Welcome to issue 19/2011 of stUdent AccOUntAnt

please email studentaccountant@accaglobal.com with your feedback on this issue
dean Westcott president barry cooper deputy president martin turner Vice president
21 september 2011

technical articles relevant to all students interview skills key preparation techniques

technical
23 tecHnicAl Articles cHAnGes tO tHe cAt OptiOn pApers FOllOWinG tHe lAUncH OF FOUndAtiOns in AccOUntAncy relevant to all Foundations in Accountancy students interest rAte risK mAnAGement relevant to AccA Qualification paper p4 AUditOrs repOrts in tHe UK relevant to AccA Qualification paper p7 cHAnGes tO tHe cAt And KnOWledGe mOdUle eXAms WitH tHe lAUncH OF AccAs diplOmA in AccOUntinG And bUsiness FOUndAtiOns in AccOUntAncy Find out more about AccAs suite of qualifications at www.accaglobal.com/ en/qualifications/ glance/fia.html

Helen brand chief executive editorial team victoria morgan editor Glen patterson deputy editor Jackie dollar design manager richard Gooding designer

a womans world

global outlook

www.accaglobal.com Jamie Ambler digital editor 29 lincolns inn Fields london Wc2A 3ee United Kingdom tel: +44 (0)20 7059 5700 email: info@accaglobal.com www.accaglobal.com publishing and adVertising Adam Williams head of publishing and commercial Anthony Kay production manager For all advertising-related matters please contact nick Willmer: tel: +44 (0)20 7902 1673 email: nickw@educate-direct.com
published by the certified Accountants educational trust in cooperation with AccA. the council of AccA and the publishers do not guarantee the accuracy of statements made by contributors or advertisers, or accept any responsibility for any statement which they may make in this publication. no part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying or otherwise, without prior written permission of the publishers. cAet 2011 issn 1473-0979

resources
27 nOticebOArd essentiAl inFOrmAtiOn AbOUt AccA And yOUr stUdies AccA connect contact details, changes to exam entry, new december 2011 exam timetable dates, rules and regulations and FAQs on the per return

whats your story?

Why did you want to become an accountant, and what do you hope to be in the future? email your story to us at studentaccountant@accaglobal.com

6 dispatch
good thing undecided

Source: Preparing for Changes to the External Audit Regime, KPMG

44%

auditor appointments

47%

70% 18% 12%

bad thing

appointing your own auditors

9%

graphic news

key

Prepared

Some experience

Not prepared
9,600 9,400 9,200 9,000 8,800 8,600 8,400 8,200 8,000 7,800 7,600 7,400 Jan-11 Feb-11 Mar-11

The UK governments plan to disband the Audit Commission will place a duty on local authorities to appoint external auditors. Despite 70% of respondents from local government surveyed by KPMG saying this was a good thing and 12% being against the proposal, almost half (44%), when asked of their preparedness for appointing auditors ticked not at all limited experience/not on radar.
600,000 500,000 400,000 300,000 200,000 100,000 Apr-11 May-11 Jun-11 0

mergers booming

Asia Pacific remains one of the most active mergers and acquisitions (M&A) markets, although deal volumes have declined while values have risen, according to KPMGs latest global M&A Predictor.

As ac vo ha Gl

key

Number of deals

Value (US$m)

profile of the typical fraudster

The overriding motivation for fraud is personal greed, followed by pressures on individuals to reach tough profit and budget targets. KPMGs Who is the Typical Fraudster? KPMG Analysis of Global Patterns of Fraud survey highlights how weakening control structures make the opportunity to commit fraud easier.

* Male 45 years old * 36 to in the finance * Works or in a function * * *

finance-related role Holds a senior management position Employed by the company for more than 10 years Works in collusion with another perpetrator

an old-age problem

Malaysia will have an ageing population by 2035, with people over 60 making up 15% of the population. The ageing society is a result of delayed marriage and a declining birth rate, according to an online survey by Pulse Group and Omnicomm Media Groups media marketing specialist arm, OMD.

Source: Who is the Typical Fraudster? KPMG Analysis of Global Patterns of Fraud (2011)

Courses start from

175

Kaplan do so much to keep you on track for success

Kaplan Distance Learning is dedicated to ensuring your exam success. No detail is overlooked. Thats why, to focus your learning, our ACCA study and revision materials have been produced by our expert tutors with the exam in mind. To help t study around your life, our market leading online resources give you the knowledge to succeed and leave you free to study whenever and wherever you like. And who else but Kaplan gives you access to tutor support outside ofce hours, even on Saturdays?*
Online community Kaplan Interact

Kaplan EN-gage online resources & tests

With resources and support like this, its no wonder our pass rates consistently exceed the ACCA worldwide average.

Kaplan Distance Learning.

A learning experience as individual as you are.
Based on Kaplan Distance Learning Standard Package. * Tutor support available Monday to Thurs 9am-10pm, Fri 9am-5pm, Sat 10am-1pm. Distance Learning students based on the June 2010 exam sitting.

Study materials provided by Kaplan Publishing Tutor support in and out of business hours

To explore more about Kaplan:

www.kaplannancial.co.uk/accaontrack
+44(0)113 200 6363 quoting code AA32 accadistancelearning@kaplan.co.uk

8 dispatch

news roundup

Despite increasing funding constraints, foreign banks operating in China are more confident than ever about their prospects, according to PwC. The surprising results of the sixth PwC Foreign Banks in China survey found banks expect continued revenue growth over the next three years due to the opening up of the Chinese economy and its transition towards a convertible currency, despite their ongoing struggle to gain a foothold. The 127 foreign players operating in the mainland account for a combined market share of only 1.83%. Mervyn Jacob, PwC financial services leader for China and Hong Kong, said that the figure fails to reflect how foreign banks are redefining market segments in China. Chinas economy may not be expanding as fast as before, but its still growing at a faster rate than the banks own home markets, he said.

01 banks on the money

greener pastures beckon

Despite growing interest in accountancy courses at Malaysian universities and colleges, mid-tier accountancy and auditing firms are finding it difficult to hire and retain staff as local accountants head for greener pastures overseas, The Star Daily reported. Heng Ji Keng, chief executive partner of Baker Tilly Monteiro Heng (BTMH), said that many Malaysian accounting graduates see better opportunities in Hong Kong, Shanghai, Shenzhen, Singapore and Australia. He added that the main reason that many graduates left was the salary disparity. An estimated 500 accounting graduates out of 1,500 from local universities leave the country every year, said Datuk Narendra Jasani, managing partner at SJ Grant Thornton (SJGT). Kazakhstan, Armenia and Georgia which are partly within the continent. The expanded firm will have more than 30,000 partners and staff, 120 offices and total revenues of 4.7bn.

05 audit hits the mark

02 bdo selects new ceo

BDO International has selected Martin van Roekel as its new CEO. van Roekel has been managing partner of the firm in the Netherlands for six years, a member of the global leadership team since 2009 and is the firms first global head of network development. He takes over in October from Jeremy Newman, who steps down after three years.

04 fears over reserves accuracy

03 kpmg jordan joins europe

KPMG in Jordan is joining KPMG Europe, extending the European firm to cover 18 countries. Other countries outside Europe that are within the firm include Saudi Arabia, Kuwait and Turkey, as well as CIS (Commonwealth of Independent States) nations Russia, Ukraine, Kyrgyzstan,

The US Securities and Exchange Commission (SEC) is concerned that relaxations in the estimating of energy reserves are undermining the accuracy of energy companies financial reports, the New York Times claimed. The relaxation allowed energy companies to expand their estimated area of reserves further away from drilling points, but concerns are growing that reserves may be smaller than some companies report (thirdparty auditing of reserve sizes is not required). As well as boosting the balance sheet, more optimistic estimates of reserves boost reported profits, as they allow companies to spread site development costs over a longer period.

A majority of Singapore retail investors use audited financial statements to guide their investment decisions, according to a recent survey by ACCA and the Securities Investors Association (Singapore). Out of 390 respondents, 90% felt external audit brought value and 80% indicated that audited financial statements were important in guiding their decisions. However, more than 75% agreed that the scope should be extended to enhance the value of audit in particular, specific assurance on a companys internal controls and investigation of risk management programmes. Respondents want to be able to piece together sufficient information to put financial numbers in context, said David Gerald, president and CEO of SIAS. They would like further assurance that a companys internal controls and risk management processes are sound before making an investment decision.