THE LOWDOWN - ACCA

20 Pages·2013·9.37 MB·English

DECEMBER 2013
intERnsHips
the best approach to
get a job offer
soCial nEtwoRking
maximising your chances
of getting a job
intERViEw tECHniQUE
handling awkward
job interviews

oxfoRD BRookEs gloBal MBa
THE LOWDOWN

EDiTOr’s
cHOicE
welcome to the december issue of
student accountant
many of you will be just about to take your
exams – we wish you all the best with these.
in this issue, we look at how best to stay acca Qualification has helped him in
calm in tricky interview situations, and also his career and also speak to recruitment
how to harness the power of social media to consultants around the world to see how
get a foot in the door. they see 2014 shaping up for job‑seekers.
we take a look at how internships can we also highlight advice from our bloggers
be excellent ways to increase your work that might help you with any last‑minute
experience and develop into permanent exam preparation.
work opportunities. and for those of you we hope you find this issue useful. if
nearing the end of your acca journey, we you have any feedback, please email us at
discuss mbas and the benefits having one [email protected]
can have on your career.
in learning centre, we speak to new Victoria Morgan
member lawrence chin about how the Editor, student accountant magazine
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 2013 issn 1473‑0979
33
wElCoME | contents
REsoURCEs
06 08
DispatCH fEatUREs
06 picture news 18 how to use social
networking and
08 news in focus
blogging to find
10 news roundup a job
22 mba: the lowdown
26 turning internships
into job offers
18
30 awkward job
14 interviews and how
to handle them
lEaRning
CEntRE
12 student 30
blogging
14 member profile
22 16 expert career
advice for 2014
sa tECHniCal aRtiClE aRCHiVE
all technical content from student accountant is
on acca’s website
pRaCtiCal ExpERiEnCE
why not log into your myacca account to record your
experience using the online recording tool my experience?
26
stUDEnt aCCoUntant | december 2013
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NEW
Martin Turner | president
FEATUrEs!
Anthony Harbinson | Deputy
38
president
Alexandra Chin | Vice president
tECHniCal Helen Brand | Chief Executive
32 technical EDitoRial tEaM
resources
Victoria Morgan | Editor
access the technical
Glen Patterson | Deputy Editor
article archive at: www. 38
Jackie Dollar | Design Manager
accaglobal.com/en/
student/acca-qual- Jane C Reid | Designer
37
student-journey/
student-accountant/sa- www.aCCagloBal.CoM
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email: [email protected]
information
wemwwai.la: [email protected]
about acca and
www.accaglobal.com
your studies
pUBlisHing anD aDVERtising
acca connect,
subscriptions, Adam Williams | publisher
recording your per, Anthony Kay | production Manager
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please contact nick willmer:
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5
DispatCH | news in pictures
philippines
philippines
Filipino children carry
their belongings in the
aftermath of Typhoon
Haiyan, which tore
through the eastern
and central Philippines.
The UN says more than
11 million people are
believed to have been
affected and some
673,000 displaced
switZerland
Valued at £40m,
The ‘Pink Star’, a
59.6-carat diamond,
was presented in
Geneva ahead of an
auction sale
russia
Miss Venezuela Gabriela
Isler is crowned Miss
Universe in Moscow
amid her country’s
switZerland economic crisis russia
stUDEnt aCCoUntant | december 2013
australia
australia
Australia’s postal service
has released a world-first
‘video stamp’, which
allows people to send
a 15-second video with
their parcels
india
Prince Charles, Prince
of Wales, and his wife
Camilla, Duchess of
Cornwall, visit the Hindu
temple Akshardham
in New Delhi, India on
their third official visit austria india
to the country
austria
At the house of German
art collector Cornelius
Gurlitt in Salzburg,
Austria, customs
investigators found
a private stash of
1,500 paintings worth
more than £850m that
were seized by the
Nazis in his Munich
apartment more than
two years ago
china
Fourteen panda cubs
celebrate their 100-day
birthday in China’s
Chengdu Giant Panda
Breeding Research Base china
77
DispatCH | news in focus
bLAckbErry rEvErsEs
DEcisiON TO gO privATE
blackberry has made a dramatic u‑turn after looking likely to
be sold to an investment company. had the sale taken place, the
distressed mobile phone company would have gained private status.
we explore the pros and cons of becoming a private company.
alex miller reports
Struggling mobile phone company Samsung and other lower-priced for the shareholders and CEOs of
BlackBerry has dramatically Android-powered smartphones. the company in question and this is
reversed a decision to sell The company’s management always going to be a major factor in
itself, despite announcing an was forced to take a massive a company’s decision making.
initial agreement with US‑based write-down on inventory of its new A massive advantage of being
investment company Fairfax phones and was also forced to private is the considerable reduction
Financial Holdings for a $4.7bn deal. axe almost half of its workforce – in regulatory and reporting
Instead, Fairfax – the largest 4,500 employees – as a result of requirements – with the theory being
shareholder of the company with a hemorrhaging money. that private companies can dedicate
10% stake – and other investors will However, the change of heart more time and money to focus on
inject $980m into the company as came as a result of Fairfax refusing the long-term goals, rather than only
part of a revised investment proposal. to increase its stake in BlackBerry looking ahead to the next quarter.
At the same time BlackBerry has and consultants recommending that Operating and running a private
announced that CEO Thorsten Heins taking BlackBerry private laden with company frees up management’s
is to leave his post. debt was not a good idea. time and energy from compliance
Due diligence and negotiations BlackBerry will now not become a requirements and short-term
were expected to be tied up by early private company, but the company – earnings management, and may
November. The books showed that like many others – will have factored provide long-term benefits to the
BlackBerry’s fiscal second-quarter in the numerous considerations of company and its shareholders.
loss this year stood at nearly turning private. A short-term focus on the
$1,012m, while the company’s Dell and Heinz are among quarterly earnings report, which is
revenue fell 45% to $1,589m during household names to turn to the dictated by external analysts, can
the same period. private world. Burger King has reduce the importance placed on
BlackBerry had failed in its switched back and forth, while longer-term functions and goals
attempts to turn itself around, Reader’s Digest and Levi Strauss such as research and development,
with the company banking on its are among others to have done so in capital expenditures and the funding
new BB10 phone to produce an recent years. of pensions.
upswing in fortunes following its An acquisition by an outside party Sarbanes–Oxley (SOX) imposes
release earlier this year. The release can create significant financial gains a raft of compliance and
followed other seemingly positive
changes such as the roll out of the blackberry will now not become a private
Q10 and Z10 handsets.
company, but the company – like many
The reality is that the sun
has been setting on the phone others – will have factored in the numerous
provider for some time due to the
considerations of turning private
ferocious competition from Apple,
stUDEnt aCCoUntant | december 2013
administrative rules on public balance between the short-term long-term success of a company as
companies. A byproduct of the considerations of the company with it seeks to differentiate its products
Enron and WorldCom corporate its long-term outlook. and service offerings and make its
failures in 2001–2002, SOX As an example, a private-equity position in the marketplace more
requires all levels of publicly traded firm that adds too much leverage to a competitive. High levels of debt can
companies to implement and public company in order to fund the prevent a company from carrying
execute internal controls. deal can seriously hinder and damage out these activities and therefore
Perhaps the most contentious part an organisation. If the economy losing any competitive edge.
of SOX is Section 404, which requires subsequently dips, the industry could Nonetheless, a ‘take-private
the implementation, documentation face stiff competition from overseas transaction’ is an attractive and
and testing of internal controls over and the company’s operators could viable alternative for many public
financial reporting at all levels of miss important revenue milestones. companies and the trend continues
the company. If the company in question has to grow. If debt levels are reasonable
Public companies must also any difficulty in servicing its debt, and the company continues to
carry out operational, accounting its bonds can be reclassified from maintain or grow its free cash
and financial engineering investment-grade bonds to junk flow, a private company can enjoy
in order to meet quarterly bonds. If this happens it would the privilege of only revealing
earnings expectations. become harder for the company to information it wants to, without
In considering whether to raise debt or equity capital to fund the constant scrutiny of analysts.
consummate a deal with a capital expenditures, expansion or Whether BlackBerry would have
private-equity investor, as is the research and development. seen the advantages of becoming
case with BlackBerry, the public Healthy levels of capital private will, for now, not be known,
company’s senior leadership expenditures and research and but who is to say it won’t in
team need to consider the development are often critical to the the future?
9
DispatCH | news roundup
s
D
2 Sweden
United Kingdom 10 5 Germany
N Japan 7
6 3 Qatar
Israel
E
r S a u di Ara bia 8 1 Singapore
Australia 9
T
4
New Zealand
UNFAzED by cHANgE – WHO WON’T bE cAUgHT ON THE HO p
Singapore has topped a list of 90 nations in its capacity to respond to changes such as natural disasters, global
competition, economic shocks and demographic trends. KPMG’s 2013 Change Readiness Index, produced with
global advisory firm Oxford Economics, measures 26 components for the index. Satyanarayan R, KPMG’s head
for government and infrastructure in Asia Pacific, said: ‘Countries are being exposed to a vast array of changes
– globalisation, automation and rising costs among others – and these create both opportunities and risks. We
cannot underestimate the importance of a nation’s ability to respond to change as this capability is vital to a
country’s success in building a sustainable economy and equitable society.’
profits ‘to converge’ and accountability are to be globally (behind London and New
Profitability rates for Islamic banks introduced to public sector financial York) in the latest survey by the
are likely to converge with those in reports, Nigeria’s government has Bank for International Settlements.
conventional banks in the future, announced. From next year, the Average daily FX turnover volume in
predicts Standard & Poor’s. Islamic national budget will comply with Singapore grew 44% to US$383bn
banks in the Gulf region grew by a a new national chart of accounts in April 2013, compared with
compound rate of 17.4% between strategy, based on International US$266bn in April 2010. Global
2009 and 2012, compared with an Public Sector Accounting Standards turnover growth in the same
8.1% growth rate among conventional (IPSAS), the public sector version period was 35%. Average daily
banks. Government support and of International Financial Reporting interest rate derivatives turnover
banks’ role in funding infrastructure Standards (IFRS). It is intended volume in Singapore also grew
for the 2022 FIFA World Cup in that IPSAS cash accounting will 6% to US$37bn in April 2013,
Qatar are cited as factors supporting be adopted next year, with full the second largest in Asia, behind
Islamic banking growth. But Islamic accrual IPSAS used by 2016. All Japan. Jacqueline Loh, deputy
banks are disproportionately government ministries, departments managing director at the Monetary
affected by the low interest rate and agencies will use IPSAS. Authority of Singapore, said the
environment and by weak revenues in ranking positions Singapore’s
non-core-banking operations. new fx leader financial centre to better serve the
Singapore has overtaken Japan investment and risk management
nigeria adopts ipsas as Asia’s biggest FX centre for the needs of financial institutions and
Greater consistency, transparency first time, and risen to third place corporates throughout Asia.
stUDEnt aCCoUntant | december 2013