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4 CONTENTS
FEATURES
LEARNING CENTRE
DISPATCH
22 INTELLIGENT LEARNING Part 2 of Soul
Patel’s series on how to pass your exams
fi rst time
24 SMALL BUT PERFECTLY FORMED
Explore the opportunities for studying
in groups
28 INDIVIDUAL PAPER WINNERS
Student Accountant speaks to
the June 2009 individual paper
prizewinners to fi nd out their tips
for new students
06 GRAPHIC NEWS Multinational enterprises feel the heat as
taxmen demand a bigger take
08 JOBS NEWS Jobs news from around the world
10 NEWS ROUNDUP Global accounting and fi nance news
14 THE 15 MOST COMMON INTERVIEW MISTAKES
And how to avoid them
16 COUNTRY PROFILE Pakistan
18 STUDENT PROFILE Sisters in Sri Lanka
SERVICES DIRECTORY
Click here to fi nd out about the services offered
by ACCA Approved Learning Partners and
subscribers to the ACCA Tuition Provider directory
19 ONLINE REVIEWS Future entrepreneurs
20 MEMBER IN 60 SECONDS Fayez Ahmed
DOWNLOAD ARTICLE PDFS
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Welcome to ISSUE 04/2010 of STUDENT ACCOUNTANT
Please email studentaccountant@accaglobal.com with your feedback on this issue
SIMPSON SCHOLARSHIP
ACCA will reward five talented ACCA students
who have already proven themselves in the ACCA
Qualification exams by paying their exam and
registration fee for a period of five years. Visit
www.accaglobal.com/scholarship/ for more information
TECHNICAL
32 TECHNICAL
ARTICLES
THROUGHPUT
ACCOUNTING
AND BACKFLUSH
ACCOUNTING
ACCA Qualification
Paper F5
INTERNATIONAL
TRAVELLERS
ACCA Qualification
Paper P6 (UK)
CHANGE
IN QUESTION
REQUIREMENTS
ACCA Qualification
Paper P7
FOCUS ON PER
Performance
objective 16
33 TECHNICAL
ARTICLE ARCHIVE All
ACCA and CAT papers
All technical content
from Student
Accountant is on
ACCA’s website at
www.accaglobal.com/
students
Answers to frequently
asked questions about
ACCA’s qualifications
can be found at
www.accaglobal.com/
learningproviders/
tuition_provider/faq
RESOURCES
34 NOTICEBOARD
ESSENTIAL
INFORMATION
ABOUT ACCA AND
YOUR STUDIES Exam
timetable, exam
results, online exam
entry, information
for new students,
Oxford Brookes and
administrative reviews
Brendan Murtagh
President
Mark Gold
Deputy President
Dean Westcott
Vice President
Helen Brand
Chief Executive
EDITORIAL TEAM
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Editor
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Editorial Consultant
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Art Editor
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Editorial Executive
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PUBLISHING AND ADVERTISING
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Production Manager
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contact Lisa Peake:
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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 2010
ISSN 1473-0979

6 DISPATCH
GRAPHIC NEWS
% %
DEVELOPED EMERGING
TAXMEN DEMAND A BIGGER TAKE
As tax authorities get tough, so multinational enterprises are feeling the
heat. The following statistics from an E&Y survey of CFOs and tax
directors reveal the biggest tax fears of global businesses.
1 Increased tax compliance burden imposed on business by tax authorities
2 Increased powers of inquiry for tax
authorities and current-year audits
32
48
43
61
4 Cross-border information sharing
by tax authorities
61
39
72
63
3 Tougher enforcement
action by tax authorities
5 Limitations to managing tax risk
and controversy, due to cuts to
internal tax support budgets or
lack of buy-in at board level
34
45
Source: Ernst & Young, Tax Administration Without Borders

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08 DISPATCH
JOBS NEWS
01 MANAGEMENT
ACCOUNTANTS SET FOR
THE TOP
Employers have the opportunity
to build leaner, more efficient
organisations, staffed by more
rounded, up-skilled finance
professionals, says recruiter
Robert Half. Effective talent
management is going to be
essential for attracting skilled
people, helping them to develop
and retaining them within the
organisation, while robust talent
management infrastructures
should lead to high quality work
and increased profits.
The agency predicted
that the role of management
accountants would be likely
to evolve in 2010, with hirers
seeking people who display
expertise in effective forecasting,
budgeting, leadership and
strategic planning. ‘The ability
for any finance professional to
show added-value skills could
be the difference between a job
offer or second place,’ says a
spokesperson for Robert Half.
Those who can show they have
mastered new skills and are able
to take on added responsibility
will stand out from the crowd.’
Indeed, the firm asserts that
HONG KONG’S BIGGEST LEAP IN
CONFIDENCE IN 10 YEARS
Hiring expectations in Hong Kong have risen
sharply, according to recruiters Hudson. A survey
of over 500 executives indicates that 53% of
employers plan to increase hiring in the first
quarter of 2010, compared with a prior figure of
just 35%. Hong Kong’s accelerating hunger to hire
is the fastest in Asia. Employers expect to pay
higher starting salaries in order to attract talent,
as well as re-invigorating mentoring and training
initiatives as part of efforts to engage with existing
employees. Mark Carriban, managing director of
Hudson in Asia, said, ‘This quarter sees the largest
rise in expectations since 1998. Most employers
in Hong Kong are optimistic about 2010.’
tomorrow’s finance managers
may make ideal candidates
for CEO roles: ‘A background in
finance has always been a good
route to becoming a CEO, but it’s
not just about being good with
numbers; it’s also about dealing
with real business issues. This
makes them a more rounded
business professional, and often
a good choice for the top job.’
02 ACCOUNTANCY CAREERS
ARE TOP IN SOUTH AFRICA
A survey conducted in South
Africa has revealed accountancy
to be the dominant career
of choice among university
students there. Twice as many
undergraduates (35%) rated
accountancy above the next most
popular profession, medicine,
with engineering, IT and HR
trailing way behind.
The survey, of over 3,000
students from 11 universities,
indicates that nearly half (44%)
of people choose accountancy
careers as a result of discussions
with family members. Chantyl
Mulder, senior executive for
transformation and growth at
the South African Institute of
Chartered Accountants, says.
‘Students believe accountancy
FACTS AND
FIGURES
78% of
executives
expecting 2010
performance to
be ‘excellent’
or ‘good’ in
Hong Kong
46% of
employers set
to pay bonuses
of more than
10% of salary
in Hong Kong
will offer adequate opportunities,
will generate a good salary, is
internationally recognised and
creates prestige, status and
respect from society. Students
are confident that accountancy
will open many doors of
opportunity in the future.’
03 IRISH CONFIDENCE ON
THE RISE
The market for finance
professionals in Ireland has
enjoyed a second consecutive
monthly increase (3%) in new
jobs, according to recruiters
Premier Group. A year-on-year
increase was also registered
for the first time since
February 2008.
Premier observed
that, bucking the usual trend
for a decline in job vacancies
in Ireland over the Christmas
period, these figures indicate
businesses in the country are
showing signs of renewed
confidence. There were 30%
fewer people looking for jobs
in December than in November,
but the agency attributed this
to expected seasonal factors;
a small year-on-year increase
suggests a cautious return
to confidence among jobseekers.

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10 DISPATCH
NEWS ROUNDUP
01 DBS REVEALS
POTENTIAL LOSS
Singapore’s DBS, South-East
Asia’s largest bank, has disclosed
that it has US$400m (S$558m)
of outstanding loans with troubled
Dubai World, a potential loss it
called ‘manageable’. DBS said it
has lent a total of US$1.3bn to
Dubai-owned companies,
while the credit to Dubai World
represents just 0.2% of the bank’s
balance sheet. ‘The bank believes
that the situation is manageable
as a substantial portion of this
[total lending] is to Dubai-owned
companies operating in Asia that
are sound.’
02 SINGAPORE JOBS
The Singapore job market
rebounded from two straight
quarters of losses to register
a gain of 14,000 in the third
quarter. Data released by
Singapore’s Ministry of Manpower
showed total employment in
September 2009 had recovered to
around the December 2008 level.
03 AUDIT FIRM
LAWSUITS LOOM
Auditors in the US have been
warned to expect a big increase
in litigation this year. Richard
A Roth of New York’s Roth
Law Firm told an accountancy
conference that recent large
losses and frauds will persuade
investors to lodge legal claims
against audit firms. Accountancy
firms should review their client
relationship practices in the
light of recent court decisions,
he said. ‘Investors will go after
whoever still has money that
FRANCE PLANS EU
CARBON TAX
French president Nicolas
Sarkozy has proposed a single
European Union-wide carbon
tax and border tariff, following
the rejection of his proposals
for a national French carbon tax
by the courts. Sarkozy said that
it would not be acceptable for
European businesses to be
disadvantaged in international
trade due to adopting more
environmentally sound business
practices. ‘In future we will levy
a climate tax at Europe’s
borders,’ he said. The president
had proposed a carbon tax in
France of €17 per ton of carbon
dioxide, but the Constitutional
Council said it contained
too many exemptions. French
economy minister Christine
Lagarde (pictured, left) said the
government was now working on
plans to apply the carbon tax
more widely, including major
energy companies.
could satisfy a legal judgment,’
said Roth. ‘This creates
tremendous risk for accountants.’
04 DUBAI BANKS
DOWNGRADED
Dubai banks have been
downgraded by ratings agencies
following reviews of their exposure
to Dubai World and other property
investments in the region.
Moody’s downgraded Emirates
NBD, Mashreq Bank and Dubai
Islamic Bank. Standard & Poor’s
downgraded National Bank of
Dubai, Dubai Islamic Bank,
Mashreq Bank and Emirates Bank
International. Fitch Ratings has
put four Dubai and Middle East
banks on ratings watch, including
HSBC Middle East.
05 CALL FOR
MORE URBANISATION
Chinese president Hu Jintao
pledged to speed up the
urbanisation of the country at
the end of the annual three-day
Central Economic Work
conference. Hu was quoted by the
mainland media as saying that he
wants the rural population to stay
in small- and medium-sized towns
and called for local governments
to speed up their reform. Hu
also ordered that investments
in industries which have excess
capacity should be reined in and
the problems of underutilised
plans should be tackled by the
respective ministries. The move is
a sign that domestic demand has
not yet reached the levels that the
government had aimed for.
06 JOB PROSPECTS
IMPROVING IN CHINA
A survey conducted among
companies in China has revealed
better job prospects during the
next three months as companies
in key industries start hiring.
The survey, conducted by
US-based recruitment agency

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12 DISPATCH
NEWS ROUNDUP Manpower,
found that steady
staff growth in the first quarter
of 2010 is forecast by 19% of
Chinese employers. Manpower
also said companies in all the
sectors it covered had positive
views on the growth of the
economy and employment
next year. The survey included
companies in finance, insurance,
real estate, manufacturing,
mining and construction,
services, transport and utilities.
07 SINGAPORE
ECONOMY SHRINKS
Singapore’s economy shrank
6.8% in the fourth quarter to
December from the previous
three months, but the slowdown
was less than expected for the
whole year, according to the
Ministry of Trade and Industry.
The decline in gross domestic
product was attributed to a weak
manufacturing sector, which
shrank 38.4% on a seasonally
adjusted quarter-on-quarter
annualised basis. The slide in
manufacturing, a dramatic
reverse from the 29.6% growth
of the third quarter, was mainly
due to a fall in output from
pharmaceuticals and transport
engineering, the ministry said.
08 SACHS OPERATION
APPROVED
The Securities Commission
has given the green light to
Goldman Sachs to establish a
fund management and corporate
finance advisory operation in
Malaysia. The move follows
the liberalisation measures
announced by prime minister
Najib Razak last year, which
include the issuing of new
Islamic and commercial banking
licences as well as family takaful
licences to foreign institutions.
Co-president of South-East Asia
for Goldman Sachs, Tim Leissner,
said: ‘The future outlook for
Malaysia’s capital markets and
its asset management industry
is very positive and through our
local presence we look forward
to playing a larger role in
their development.’
09 M&A ACCOUNTING
NOT USEFUL
M&A accounting is costly, difficult
and not useful for investors,
according to a Financial
Reporting Council (FRC) study.
One explanation, says FRC, is
that IFRS 3, Business
combinations, has not been
properly applied by companies
because of unfamiliarity with its
requirements and the complexity
of valuing intangible assets such
as brands and customer
relationships. Amendments to
IFRS 3 should mean more
intangibles are recognised for
accounting purposes and greater
consistency is achieved between
disclosures about acquisitions in
accounts and what companies
state in business reviews.
10 ‘RELEVANT’ INFO NEEDED
More emphasis should be placed
on making accounts more relevant
for investors, according to a
survey conducted by the CFA
Institute. Three-quarters of the
16,000 investment professionals
surveyed believe that relevant
accounts information is more
important than convergence or
reducing complexity.
11 REPORTSOURCE
JOINS DELOITTE
Deloitte has acquired UK
performance and information
management consultancy
ReportSource. Ian Harrison,
managing director of
ReportSource, joins Deloitte as a
partner. Deloitte says the
acquisition will help it support
clients to maximise the benefits
of existing IT investments.
Improved relations: Arab
Thought Foundation chairman
Prince Khaled Al-Faisal
KUWAIT HOSTS FIRST
ARAB UNITY SUMMIT
The first Arab economic
unity conference has taken
place in Kuwait. Topics
included the prospects for
monetary and economic
union, developing the
region’s economic strength
beyond oil, food security,
trade liberalisation,
and Islamic finance as
a business model. The
conference also hosted the
Arab Creativity Awards,
marking achievements in
Arab science, technology,
economics, society,
literature, culture and
media. It was organised
by the Arab Thought
Foundation, which promotes
improved relations between
the Arab and Western
worlds, and was sponsored
by Kuwait. ‘The Arab region
can restore its historical
well-deserved honourable
status among the other
nations of the world,’ said
foundation chairman Prince
Khaled Al-Faisal.