See the difference with BPP

Here at BPP, we go the extra mile to make sure you achieve the best possible results in your ACCA exams. No wonder ACCA have awarded us triple Platinum* status for our student tuition, learning materials and pioneering online classroom. But dont just take their word for it. Our ACCA pass rates are an eye-opening 74% which is well above institute national averages. Were so condent about the quality of our tuition that we offer free Pass Assurance.

Pass with Condence

So how do we do it? See for yourself at www.bpp.com/acca Or book now on 0845 833 7275
*Awarded for student tuition, learning materials and e-learning provision (some study centres excluded) Terms and conditions apply. See www.bpp.com/passassurance for full details

Learning financial English could help you pass yours exams and secure a job. Taking the Cambridge International Certificate in Financial English (Cambridge ICFE) will show potential employers that you have the skills to communicate effectively with clients and colleagues. To find out more including where to study and take the exam visit www.financialenglish.org

4 contents
dispatch
06 graphic neWs tescos expansion plans and corporate tax rates around the world 08 neWs roundup global finance and accounting news 10 neWs feature an a to Z of 2011 what to look out for this year

features
20 aLL abroad! find out what you need to know if youre interested in working in another country 22 beginning in booKKeeping many acca students will start their accountancy careers working in entry-level roles in accounts payable or accounts receivables. We take a look at where these roles can lead

learning centre
12 study tips studying abroad 12 accountancy futures access to finance 13 young and ambitious bano sheikh, uK 14 per getting started 16 russian perspective anatoli Karlovski, st petersburg 18 taLKing technoLogy integration matters

services directory

click here to find out about the services offered by acca approved Learning partners and subscribers to the acca tuition provider directory

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 01/2011 of student accountant

please email studentaccountant@accaglobal.com with your feedback on this issue
mark gold president dean Westcott deputy president barry cooper Vice president

technical
27 technicaL articLes neW syLLabus for paper f5 relevant to acca Qualification paper f5 corporation tax relevant to acca Qualification paper p6 (uK) internationaL traveLLers relevant to acca Qualification paper p6 (uK) change of syLLabus for paper p7 relevant to acca Qualification paper p7 computer-aided audit techniQues relevant to cat paper 8 and acca Qualification papers f8 and p7 a comprehensive online archive of student accountant technical articles is available at www. accaglobal.com/ students/student_ accountant/archive/ online resources: www.accaglobal.com/ students/cat www.accaglobal.com/ students/acca

helen brand chief executive editorial team victoria morgan editor Jamie ambler editorial consultant Jackie dollar art editor richard gooding designer www.accaglobal.com glen patterson online 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 Lisa peake: tel: +44 (0)20 7902 1224 email: lisa@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
31 noticeboard essentiaL information about acca and your studies acca connect contact details, annual subscription and exam fees, June 2011 exam timetable, exam results and certificates, and obu bsc (hons)

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
TESCO TARGETS CHINA
Tesco aims to quadruple China revenue in five years by doubling the number of its hypermarkets to 150, and building more lifespace malls with a ground-floor Tesco and other shops.

NOW

82

150
2015

NOW

2015

50

GRAPHIC NEWS

FASTEST UNITED ARAB EMIRATES

1 2

MALDIVES 0 UNITED ARAB EMIRATES 12 BAHRAIN 36 QATAR 36 BAHAMAS 58 LUXEMBOURG 59 OMAN 62 SWITZERLAND 63 IRELAND 76 SEYCHELLES 76 SLOWEST

SAUDI ARABIA

3 4

HONG KONG

SINGAPORE

MALDIVES

IRELAND

CANADA
10

KUWAIT

QATAR

OMAN

5 6 7 8 9

16

UK

23

MALAYSIA

114

MAINLAND CHINA

Some jurisdictions make paying business taxes a breeze, but in others its painfully complicated (as the diagrams above and below of best and worst show), according to PwCs Paying Taxes 2011 survey of 183 countries. The listing on the right orders countries according to the number of hours it takes to prepare, file and pay business taxes. The Maldives tops both rankings because it has no business taxes.

FROM ZERO TO GROSS: TAX COMPLIANCE BURDENS

10

174 175 176 177 178 179 180

UKRAINE 657 SENEGAL 666 MAURITANIA 696 CHAD 732 BELARUS 798 VENEZUELA 864 NIGERIA 938 VIETNAM 941 BOLIVIA 1,080 BRAZIL 2,600

CENTRAL AFIRCAN REPUBLIC

REPUBLIC OF CONGO

VENEZUELA

BELARUS
183

UKRAINE

JAMAICA

PANAMA

BOLIVIA

GAMBIA

CHAD

181 182 183

174

175

176

177

178

179

180

181

182

Kaplan Publishing study materials more than just books.

Kaplan Publishings combination of student-friendly ACCA study materials and innovative online resources are designed with one thing in mind, to help you pass first time.
Exam-focused materials
Reflecting how topics are taught in the classroom, covering the entire syllabus, focusing on what will be required of you in the exam.

Written by our expert tutors

Written by subject specialists who are also experienced tutors, so they know what works for students and how best to deliver it.

Student-friendly
Using accessible language and engaging formats, Kaplan simplifies the learning process to make it easier for you to succeed.

Innovative solutions
More than just books, our study materials are enhanced by a wealth of free online resources to aid learning and help you fit study into your life.

Find out more about our range of ACCA study materials

www.kaplanpublishing.co.uk/morethanbooks
+44(0)113 200 6375 quoting code KP03 flexiblelearning@kaplan.co.uk

8 DISPATCH
01 BELARUS AUDIT FIRM JOINS BDO

NEWS ROUNDUP

The largest accountancy firm in Belarus, previously part of KPMG, has joined BDO as BDO Belarus. The firm, which has 65 partners, is based in Minsk. The former ORFICO accountancy firm in Algeria has also joined the BDO network, as BDO Algeria. It has three partners and 20 staff. These are significant additions that further the strategic growth plans of BDO in these regions, said Jeremy Newman, CEO of BDO International. Given its well-earned reputation, it is not surprising that BDO Belarus is now the largest accountancy firm in Belarus. The addition of BDO Algeria allows us to expand our presence in Africa, a continent that is increasingly important to clients of our member firms.

MACAUS GAMING REVENUE SURGE

02 ACCA RESEARCH INTO EMISSIONS

The gross gaming revenue of Macaus casinos reached US$2.17bn in November, according to Reuters, representing a 56.9% yearonyear increase. Many casinos are celebrating their change of luck following a disastrous period during the economic downturn. Among them was Melco Crown Entertainment, coowned by Hong Kongs Stanley Ho and Australias James Packer, which in Q3 2010 returned its first profit in 10 quarters. Ho told Bloomberg that a corner had been turned. Macau is firing on all cylinders, and we are fully participating in this growth, said Ho. from Barclays Bank. The revised version is intended to be easier to use, contains a free training course handbook and a simple Excel-based accounting system. More than 14,000 people a year operating from 194 countries have downloaded the guide since it was first published in 2005. The latest one is available free at www.mango.org.uk/Guide. and deposit holders. The Central Bank also intends to improve bankruptcy procedures.

Accounting practices on emissions allowances vary substantially, according to research from ACCA. Almost half of surveyed companies (11 out of 26) treat emissions allowances as intangible assets, so their allowances are measured in company accounts at cost. Consequently, allowances obtained free are shown as having nil value, while those that have been purchased are valued at cost price. Only 15% (four companies) are accounting for emission allowances at fair value, with the difference between fair value and cost recognised as a governmental grant and presented as deferred income on the balance sheet.

05 ISLAMIC FINANCE STRENGTHENS

04 CRIMINAL SANCTIONS TIGHTEN

03 MANGO REVISES GUIDE FOR NGOs

Mango, the adviser to NGOs, has published a revised Guide to Financial Management for NGOs, with financial backing

Detailed proposals are being drawn up by Russian criminal authorities and financial regulators to increase criminal sanctions on accountants and bankers for false accounting. New sanctions are expected to be introduced from 2012, amending Russias criminal code and making it illegal to knowingly provide false or incomplete data with the intention of hiding a real financial position. This is intended to increase protection of creditors

Liberalisation and the development of international Islamic financial infrastructure has been the driving force behind the growth of Islamic finance, said Bank Negara Malaysia governor Dr Zeti Akhtar Aziz. This trend has prompted Islamic financial institutions to venture beyond their domestic borders. Today, there are more than 600 Islamic financial institutions that operate in more than 75 countries, she told delegates at World Congress of Accountants (WCOA) 2010. Despite the turmoil in the global financial system, Islamic finance has expanded at an average annual rate of 20%, representing one of the fastest-growing segments in the financial industry.

STUDENT ACCOUNTANT ISSUE 01/2011

The latest on the global economy www.accaglobal.com/economy

06 VODAFONE FACES INDIAN CLAIM

Indias tax authorities are examining several multibillion-dollar merger and acquisition cases, following their success in obtaining a legal judgment in their favour over a US$2.52bn tax claim. Telecoms company Vodafone claimed that as a transaction between it and Hutchison had taken place in the Netherlands and did not involve an Indian company, no tax was due to India on the transaction. Subsequently, the Dutch authorities have claimed that the Indian courts decision was in breach of international agreements.

IRELAND PRESERVES CT RATE

07 ASIA STOCK EXCHANGES UNITE

The stock exchanges of Malaysia, Singapore and Thailand will link via an electronic trading system that will give investors access to all three markets simultaneously by the second half of 2011, according to officials. The move is part of a proposed single securities market that will provide easier access for investors and boost market liquidity in South-East Asia. The Philippines ast Stock Exchange will join the alliance in the first half of 2012; however, it is unclear if Indonesia, Brunei and Vietnam will also join.

Ireland is holding its corporate tax rate at 12.5%, even though France and Germany had pressed it to raise it as a condition of the 85bn rescue funds from the EU and International Monetary Fund. Other conditions were imposed, including an obligation on Ireland to produce regular accounts on income and expenditure, and to report on the financial position of staterescued Irish banks. The US Chamber of Commerce in Ireland welcomed the current corporate tax rate and the publication of a fouryear austerity plan designed to strengthen the countrys fiscal position. This provides reassurance to corporations intending to invest in Ireland, said Joanne Richardson, CEO of the US Chamber of Commerce.

09 GRANT THORNTON PROFITS UP

Grant Thorntons pretax profits in the UK grew by 40.2% to 77.6m in the financial year ended June. This was despite revenues falling in both assurance (6.2%) and tax (4.8%). Revenues in the advisory practice grew by 11.1% to 151.2m. During the year, advisory overtook assurance to become the largest part of the firms operations by revenue.

10 AADB INVESTIGATES FIRMS

08 NEW E&Y TAX CENTER

The Accountancy and Actuarial Discipline Board (AADB) is investigating PwC, KPMG, Baker Tilly and RSM Robson Rhodes. PwC is being investigated regarding its audit of collapsed social housing company Connaught. The KPMG investigation relates to its audits of BAE Systems and commissions that may have been paid by BAE and related companies. The investigation into Baker Tilly regards its audit of the Tanfield Group and the recording of impairments. Robson Rhodes and its partner, Glyn Williams, are being investigated regarding revenue recognised in the accounts of iSOFT Group between 2003 and 2005.

Ernst & Young is launching a new Asia-Pacific Tax Center (APTC). This is part of the firms global investment initiative (US$1.2bn has been invested), which focuses on improving presence and service offerings in emerging markets. The APTC adds to the existing centralised virtual tax service hubs globally and will have 100 tax professionals from across the region. It has ambitious growth plans and hopes to triple over the next 18 months.

11 PwC MALAYSIA NAMED TAX FIRM OF THE YEAR

PwC Malaysia was named Tax Firm of the Year by leading tax industry publication International Tax Review at its annual Asia Tax Awards. The firm also took home the award for Transfer Pricing Firm of the Year. Other PwC firms in Australia, China, India, Singapore, Thailand, Taiwan, Indonesia, Hong Kong, New Zealand and Vietnam also took home awards for their respective territories.

10 DISPATCH
Audit The momentum for audit change sped up considerably last year. The EUs green paper, one of a number of probes on the subject, contained some radical ideas. Expect to see more this year.

and early snowfall. 2011 could bring us an equal dose of environmental change. Fair value A completed version of a new international standard on fair value measurement is expected in the first quarter. If accepted, the proposals will create a single, unified definition of fair value. Growth The global recovery will continue to move at two speeds, with the IMF forecasting the BRICs hitting 6.4% but the developed nations struggling to keep up, with 2.2% GDP growth.

and nonfinancial performance) would become the norm. The International Integrated Reporting Committee aims to create a globally accepted framework. Julian Assange Whatever the outcome of any criminal proceedings, Assange is likely to continue to entertain some and embarrass others by leaking secret diplomatic cables. The Wikileaks founder was forced to switch operations to a Swiss host server after several US internet service providers refused to handle the site.

Bolshoi Theatre Due to reopen in 2009, a series of setbacks have forced a postponement of the reopening of the Moscow theatre to 2011.

Kids Also known as Generation Z, these digital natives, born after 1990, will start entering the jobs market. Having never known an ITless world, they have an ease and expectation with technology and social media that may challenge how you work.

AN A-Z OF

We look ahead to some of the major trends and events of the forthcoming year

Currency wars Currencies have become a source of tension among the biggest economies, especially the US and China. Countries are accusing each other of manipulating their currencies to make imports expensive and domestic goods cheaper in a beggarthyneighbour effort to create jobs. Debt As national debt mushrooms and the public sector shrinks, growth will have to come from businesses (and that means you). Roll your sleeves up for a year of very hard work. Environment The environment gave us much to battle with in 2010 erupting volcanoes, landslides, flooding

Leasing A new international standard will tighten rules on lease accounting this year, forcing some corporates to bring billions of pounds in liabilities on to their balance sheets. Retailers are expected

Hans Hoogervoorst Currently chairman of the Dutch markets regulator, Hoogervoorst will succeed Sir David Tweedie as chairman of the International Accounting Standards Board in June 2011.

Integrated reporting At the World Congress of Accountants in 2010, International Federation of Accountants chief executive Ian Ball said that integrated reporting (the combined reporting of a companys financial

MMOs A massively multiplayer online game is a multiplayer video game capable of supporting hundreds or thousands of players online simultaneously. Most of the newer game consoles, including Nintendo DSi and Wii can access the internet and may, therefore, run MMO games. Watch out in particular for Planet Michael, inspired by Michael Jackson.

11
Wedding, the Royal One Prince William is to marry his longterm girlfriend Kate Middleton on 29 April. Kate and William, second in line to the throne, will marry at Westminster Abbey. The British get an extra bank holiday to celebrate the wedding.
to be among the hardest hit. readers to pay to view their online content. In early 2011 The New York Times will ask readers to pay for the first time, joining the UKs Times and Financial Times. QE 3? As the Bank of Englands monetary policy committee held its last meeting in 2010, analysts were predicting that the BoE would not be pumping up the economy with quantitative easing. But US Federal Reserve chairman Ben Bernanke has hinted he may yet resort to more QE: Its certainly possible.

of value added tax in the UK rises from 17.5% to 20%. Other countries are also looking at increasing their sales taxes to fund government coffers under pressure. XBRL Tax and regulatory authorities across the world are stepping up their demands that companies use the internet tagging language to file accounts and tax returns. Year of the Rabbit The Chinese Year of the Rabbit starts on 3 February. A rabbit year is supposed to be a quiet one, giving respite after the current Year of the Tiger. Hopefully we can all breathe a sigh of relief after the past two tumultuous years.

Numerology A numerologists delight, this year will provide patterns on the 11th of each month except October and December. The number 11 will be everywhere in 2011. For example, the 11.11.11 sequence that marks the 11th hour of the 11th day of the 11th month of 1918 when the armistice was proclaimed to end World War I in Europe can now have another 11 added to mark the year.

Obama hits 50 US president Barack Obama will celebrate his 50th birthday as the worlds most powerful man this year. A year before presidential elections in 2012, it is hoped that Obama birthday parties will reactivate millions of his 2008 supporters. Paywalls More newspapers are expected to ask

Revenue recognition New rules on revenue recognition in 2011 are likely to have a significant effect on some industries including automotive, engineering and construction, and pharmaceutical.

global population hit six billion but, say the experts, by the end of 2011 there will be another billion people in the world.

celebration given the eurozone debt crisis. UK GAAP The Accounting Standards Board has taken the first definitive step towards the elimination of UK generally accepted accounting principles in a new draft policy that sets the stage for a future where UK GAAP will cease to exist, having been replaced by IFRS.

Seven billion It may seem only a short while since the

Tallinn The Estonian capital city of Tallinn will enjoy a double celebration this year as it becomes European Capital of Culture 2011. The nation is also poised to embrace the euro in January perhaps with somewhat less

Zen As the age of austerity is further entrenched its clear that accountants, not to mention the rest of the country, will need all the Zen sentiment they can muster. Michelle Perry is a freelance writer and journalist

VAT In January the rate