26 january 2011

Stress management
coping strategies for
study and work

examinable documents
relevant for june 2011

workplace essentials

growing
your skill set
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4 cOntents
dispatch
06 GRAPHIC NEWS Cathay Pacific forecasts record
profits; Singapore consumer confidence; Infosecurity
fears rise as Web 2.0 takes off; Big Four Malaysian
workers’ paradise awards
08 News roundup Global finance and accounting news

features
20 start as you mean to go on
Stress and stressful situations can affect us all.
Student Accountant gives you some top
tips for avoiding work and study stress
22 putting down roots
Developing essential workplace
skills early in your career will set you
in good stead for your future
career plans

learning centre
10 accountancy futures Audit and society 14 obu bsc degree RAP prizewinners
11 The view from HONG KONG Mike Walsh, Asiajet 16 alp- c New approved publisher programme
12 WEbwatch Speed reading for study and work 18 working life Students working at B&Q, UK

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 Welcome to Issue 02/2011 of student accountant
Mark Gold
Please email [email protected] with your feedback on this issue President
Dean Westcott
Deputy President
Barry Cooper
Vice President
Helen Brand
technical Chief Executive

Editorial Team
27 technical articles
Victoria Morgan
value added tax: part 1 Editor
Relevant to ACCA
Jamie Ambler
Qualification Paper F6 (UK)
Editorial Consultant
how to account
Jackie Dollar
for property
Art Editor
Relevant to ACCA
Qualification Papers F7 Richard Gooding
and P2 Designer
business
forecasting www.accaglobal.com
and strategy Glen Patterson
Relevant to ACCA Online Editor
Qualification Paper P3
capital taxes 29 Lincoln’s Inn Fields London
Relevant to ACCA WC2A 3EE
Qualification Paper P6 (UK) United Kingdom
tel: +44 (0)20 7059 5700
changes in
email: [email protected]
question style for
www.accaglobal.com
paper P7
Relevant to ACCA
publishing and Advertising
Qualification Paper P7
Adam Williams
An online archive of Head of Publishing and Commercial
Student Accountant
Anthony Kay
technical articles
Production Manager
is available at: www.
accaglobal.com/
students/student_ For all advertising-related matters please
accountant/archive/ contact Lisa Peake:
tel: +44 (0)20 7902 1224
Online resources: email: [email protected]
www.accaglobal.com/
students/cat Published by the Certified Accountants
www.accaglobal.com/ Educational Trust in cooperation
students/acca with ACCA.

RESOURCES The Council of ACCA and the publishers

do not guarantee the accuracy of
statements made by contributors or
31 noticeboard advertisers, or accept any responsibility
for any statement which they may make in
Essential this publication.
information
about ACCA and No part of this publication may be
your studies reproduced, stored in a retrieval system,
ACCA Connect or transmitted in any form or by any means,
contact details, annual electronic, mechanical, photocopying
subscription and exam or otherwise, without prior written
fees, June 2011 exam permission of the publishers. © CAET 2011
timetable, exam entry, ISSN 1473‑0979
what’s your story? Student Accountant,
Why did you want to become an accountant, and and OBU BSc (Hons)
what do you hope to be in the future? Email your
story to us at [email protected]
 6 dispatch
higher-flier feelin’ good
Two years after the Consumer confidence
global aviation crisis, in Singapore has trebled
Cathay Pacific has HK$4.69bn HK$12.5bn in the past 12 months, 31.2 86.6
forecast record profits. 2009 2010 according to MasterCard. 2009 2010
graphic news
infosecurity fears rise as web 2.0 takes off
Cloud computing and social networking are on the rise, heightening business risks, respondents tell
Ernst & Young’s annual Global Information Security Survey

60%
of respondents believe they are facing a heightened level of risk from the use of social networking, cloud
computing and personal mobile devices in the enterprise.

46%
of respondents say their annual investment in information security is increasing.

30%
of respondents say they have an IT risk management programme in place that addresses the increasing
risks related to the use of new technologies.

1 Ernst & Young big four win

2 Pwc malaysia malaysian workers’
3 KPMG paradise awards
The Big Four’s Malaysian practices
4 Deloitte have been voted by Malaysian
5 IBM Malaysia graduates as the best places to work
in the Graduate Employer of
6 Shell malaysia the Year awards.
7 Sime Darby
8 CIMB Group
9 Bank Negara malaysia
10 AirAsia
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 8 dispatch
01 new acca members evaluate the IIA’s standard-setting
celebrate in russia petronas towers processes. Among organisations
On 26 November 2010 ACCA face rival represented by the Oversight
Russia’s 62 new members (who Malaysian prime minister Council are the International
became members between 15 June Najib Razak has brushed Federation of Accountants,
news roundup
and 15 September) were given aside criticism from World Bank and Organisation
their membership certificates. The ex-premier Tun Dr for Economic Co-operation
ceremony took place in the Davos Mahathir Mohamad about and Development.
Hall of the Swissotel Krasnye the proposed 100-storey
Kholmy in Moscow. Warisan Merdeka, arguing 03 sec and fsa unite
The new members received for the mega project to on  regulation
their membership certificates be judged on a long-term The US Securities and Exchange
from Leonid Shneidman, Head basis instead. After initially Commission (SEC) and the UK
of the Regulatory Department supporting the project, Financial Services Authority
for government financial control, Mahathir said the US$1.6bn (FSA) have met to discuss
audit and accounting in the Warisan Merdeka tower how to improve transatlantic
Ministry of Finance of the Russian would eclipse his brainchild, financial regulation. Topics
Federation. Mr Shneidman said Kuala Lumpur’s iconic discussed by SEC chair Mary
that ACCA in Russia has come 88-storey Petronas Twin Schapiro and Lord Turner of
a long way in 10 years – now Towers. More than 263,000 the FSA included oversight of
ACCA members work not only people have signed up to a over‑the‑counter derivatives
in the Big Four, but in large Facebook petition against trading, high‑frequency trading,
companies in different sectors: Najib’s skyscraper plan, recent regulatory initiatives
oil and gas, banks, retail etc. saying that taxpayers’ money regarding credit ratings agencies
ACCA is becoming more and more would be better spent and cross‑border enforcement
influential in Russia and its role on education, healthcare information-sharing. They
grew significantly after the new and public transport. ‘I confirmed their commitment
law on consolidated statements would like to retain the to working together to improve
was adopted in August 2010. Twin Towers as the highest regulation and oversight of their
Mrs Gryaznova, Chairman buildings in Malaysia,’ securities markets, particularly
of the Unified Certification said Mahathir, who retired with regard to globally active
Commission of Auditors, in 2003 after 22 years regulated firms that have a
congratulated the new members, in power. presence in both the US and UK.
saying that she was happy to see
so many young and lively faces and 04 HK revises
wished them harmony and balance growth forecast
between work and personal life. Hong Kong’s economy remained
She concluded, saying: ‘I wish you robust in the third quarter,
in your future life to be happy when with GDP growth stronger than
you leave for work each expected at 6.8%, but the South
morning and happy when China Morning Post reported that
you leave work for home economists warn of a rising risk
in the evening.’ of inflation and an asset-market
bubble. The government revised
02 iia forms its full-year growth forecast to
oversight council 6.5% from between 5% and 6%
The Institute of Internal Auditors predicted earlier. ‘Overall, the
(IIA) has formed a global internal figures are encouraging,’ said
oversight body – the International government economist Helen
Professional Practices Framework Chan. ‘But risks are still with us.
(IPPF) Oversight Council. It Apart from the weak recovery
will develop guidance within in America and Europe, the new
IPPF for internal audit round of quantitative easing
professionals and will also in America is a new risk.’
 student accountant issue 02/2011
The latest on the global economy
9
www.accaglobal.com/economy

05 singapore keeps
eye on it companies
Singapore’s Auditor General to prepare
Office will re-prioritise the consolidated
areas being selected for audit accounts that
and pay greater attention to include key financial information
IT services procurements and regarding their activities in third
contracts. Replying to questions countries. The intention is to
in Parliament, finance minister improve transparency on capital
Tharman Shanmugaratnam flows, assisting tax authorities
revealed this in the light of the to determine whether transfer
recent cases uncovered at the pricing is taking place.
Singapore Land Authority (SLA)
and the Intellectual Property 08 frrp sets
Office of Singapore. A former reviews priorities
deputy director at the SLA, who The Financial Reporting Review
has already been accused of Panel (FRRP) will prioritise the
cheating the government of commercial property, insurance,
some S$12.1m, was recently support service and travel
also charged with eight more sectors in its reviews in 2011/12.
cheating offences. FRRP announced it will take a
particular interest in companies
06 hk company operating in niche markets, or
registrations up those outside the FTSE 350,
Hong Kong has registered its because these are seen as
1,500,000th local company. property facing more risks in the current
Since the Special Administrative bubble deflates economic climate than larger,
Region of China’s first company Asia’s property markets more diversified companies. In
was incorporated in 1865, the are set for a continuous the support services sector, FRRP
numbers have been growing drip feed of tighter will focus on those companies
steadily, reaching 500,000 in regulations in coming with significant exposure to public
1994 and reaching one million months as authorities spending cuts.
in 2005. It takes only four try to take the froth out
days to set up a company in of surging home prices 09 acca reviews emissions
Hong Kong, but in early 2011, without triggering a crash. Accounting practices on
following the launch of electronic In late November, Hong emissions allowances vary
incorporation, the process will be Kong announced its fifth set substantially, according to
cut to less than one day. of measures in 2010 as it research from ACCA. Almost half
struggled to curb speculation of surveyed companies (11 out
07 country in its property markets. of 26) treat emissions
reporting review China, Singapore, Taiwan, allowances as intangible assets,
The European Union is Thailand and Malaysia have so their allowances are measured
consulting on a possible also unveiled more stringent in company accounts ‘at cost’.
requirement by EU companies regulations in recent months. Consequently, allowances
to adopt country‑by‑country But Asian investors’ appetite obtained free are shown as having
reporting practices, requiring for property seems far from nil value, while those that have
multinationals to disclose sated, with prices continuing been purchased are valued at cost
financial information on their to climb. That will likely price. Only 15% (four companies)
overseas operations in their prompt governments to raise are accounting for emission
annual financial statements. In mortgage requirements allowances at fair value, with the
September 2010, the European again, increase land supply difference between fair value and
Commission and the European and – in the case of China – cost recognised as a governmental
Parliament evaluated the impose property taxes. grant and presented as deferred
feasibility of requiring listed income on the balance sheet.