4 cOntents

dispatch
06 GRAPHIC NEWS ACCA’s Talent Management 2010:
Foundations for Growth report findings
08 NEWS ROUNDUP Global accounting and finance news

features
18 time to align?
Converging US GAAP and International
Accounting Standards has sparked
much debate. We shed light on the
latest developments and look at what
might happen over the next year
22 dress to impress
Creating the right first impression
in a job interview is crucial, and
knowing exactly how to dress
to impress will certainly stand
you in good stead
24 looking
for clues
Forensic accounting
combines accounting,
information technology
and investigation skills.
Student Accountant takes a
look at the career options

learning centre
12 working life Amanda Gan, China 15 approved study content Content Provider Directory
13 employer profile PwC, Trinidad and Tobago 16 expert advice Study success
14 achieving excellence In Pakistan 16 world cup competition The second winner’s profile

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 Welcome to Issue 20/2010 of student accountant
Mark Gold
Please email studentaccountant@accaglobal.com with your feedback on this issue President
Dean Westcott
Deputy President
Barry Cooper
Vice President
Helen Brand
technical Chief Executive

Editorial Team
29 technical
Victoria Morgan
articles
Editor
position‑based
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and
Editorial Consultant
resource‑based
strategies Jackie Dollar
Relevant to ACCA Art Editor
Qualification Paper P3 Richard Gooding
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Qualification Paper F7
Adam Williams
student Head of Publishing and Commercial
accountant Anthony Kay
technical article Production Manager
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An archive of For all advertising-related matters please
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with ACCA.

RESOURCES The Council of ACCA and the publishers

do not guarantee the accuracy of
statements made by contributors or
33 noticeboard advertisers, or accept any responsibility
Essential for any statement which they may make in
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2243_acca_sa_revision_&_qbd.indd 1 24/09/2010 14:20

 8 dispatch
01 fasb chief to
step down
Bob Herz will retire as chairman
of the US Financial Accounting
Standards Board (FASB) after
news roundup
eight years. Member Leslie
Seidman will become acting
chair. Securities and Exchange
Commission chair Mary Schapiro
said: ‘During his tenure, Herz has
served as an effective investor
advocate to improve the quality
of financial reporting standards
around the world.’ Coinciding
with the announcement of
the change of leadership of
the FASB, it was also decided
that board membership would
grow from five to its original
seven members. Trustees
of  the Financial Accounting
Foundation believe this
will assist with the
convergence programme
with IASB. For more on
convergence, see p18–20.
02 lease
accounting reforms
Reforms to lease accounting
proposed by the International
Accounting Standards Board
(IASB) and the US Financial
Accounting Standards
Board (FASB) risk drying up
debt finance for UK businesses
and threaten recovery, claims
the Finance and Leasing
Association (FLA). Under the
proposed new IASB standards,
companies would have to report
the estimated fair value and
cost of leases on their balance
sheets. The FLA argues this
would increase the administrative
burden on lenders and lead to
greater accounting uncertainty.
03 negligence claims
on the rise
Negligence claims against
professional services firms have
risen to an 11-year high, pushing
the cost of professional indemnity
tax hike on
resale flats
In an attempt to curb
speculative activity in the
property market, the
Singapore government
has imposed a 3% tax
on resale flats within
three years, up from the
previous one year limit. It
also raised the minimum
required deposit on second
homes from 20% to 30%
of the purchase price.
The move follows a 38%
rise in average private
residential prices for the
year to 30 June, which
took price levels above
the previous peak, reached
in June 1996.
insurance to rates that many firms
cannot afford. Negligence claims
launched against professional
services firms in the High Court
jumped by 125% to 332 last year,
up from 147 in 2008, according
to a report from finance providers
Syscap. Premiums rose when
insurers became nervous about
calls on policies after law firm
Halliwells became insolvent last
year, while the collapse of Quinn
Insurance reduced competition
between providers.
04 iasb
improvement proposal
The International Financial
Reporting Standards (IFRS)
Foundation, the new name for
the oversight body of the
International Accounting
Standards Board (IASB), has
published proposals for the
IASB’s annual improvements
process. This is the
mechanism for non‑urgent but
necessary amendments to IFRSs
to be grouped together and issued
in one package to clarify guidance
and wording, or make relatively
minor amendments to the
standards that address unintended
consequences, conflicts
or oversights.
05 ACRA Appoints
new chair
Singapore’s Ministry of Finance
has appointed Chan Lai Fung
as chairman of the board of
the Accounting and Corporate
Regulatory Authority (ACRA). The
appointment will take effect from
1 September 2010. Chan takes
over from Peter Ong Boon Kwee,
also the permanent secretary
(finance), who has been appointed
head of civil service with effect
from 1 September. During his
tenure, ACRA continued to leverage
on IT in its effort to provide
innovative services to meet the
changing needs of its stakeholders.
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2152_acca_sa_dl_full_page.indd 1 24/09/2010 14:37

 10 dispatch
06 Japan ¥920bn
stimulus plan
Japan announced plans for
a ¥920bn fiscal stimulus
package to safeguard a fragile
news roundup
recovery and curb the impact of a
strong yen. The stimulus package
will be financed by reserve
funds, said prime minister
Naoto Kan. He added that the
government would consider
compiling an additional budget
if necessary. The announcement
follows the Bank of Japan’s
move to expand a multibillion-
dollar loan programme in a bid
to spur lending. The central
bank unveiled a six-month
low‑interest scheme worth ¥10
trillion to financial institutions.
07 yuan
settlement scheme
The People’s Bank of China
announced it will allow overseas
institutions, including Hong
Kong lenders, to invest in the
mainland interbank bond market.
The pilot scheme will start with
foreign central banks, clearing
banks for cross border yuan
settlement in Hong Kong and
Macau, and other international
lenders involved in trade
settlement. The scheme, which
comes into effect immediately, is
intended to enhance cross‑border
yuan settlement by giving the
yuan circulating overseas a
better channel for being invested
back in the mainland markets.
08 asia resolute
on standards
As Asia emerges as a significant
force in international accounting,
its influence on accounting
regulations increases. Sir
David Tweedie, chairman of
the International Accounting
Standards Board (IASB),
believes Asian nations will take
a tough stance against political
interference in accounting
standard setting as their influence
continues to grow. ‘You [may] find india sees
Asia, which is pretty supportive, economic growth
doesn’t like people telling India’s economy grew 8.8%
[standard setters] what to do.’ in the fiscal first quarter
The IASB was pressured by – its best performance in
parts of Europe to change its fair two-and‑a-half years – as
value standard in the wake of the country returned to
the crisis and was the first bloc expansion levels seen
to adopt the standards in 2005. before the 2008 global
When [accounting standards] financial crisis. The
become truly international, with boom between April and
Asia next year, Europe will not be June was propelled by a
the big power,’ said Tweedie. 12.4% year‑on-year surge
in manufacturing, while
09 oil imports on the rise construction jumped 7.5%
China, which is set to import and mining output leapt
more than 55% of its oil needs 8.9%, the Central Statistical
this year, should seek greater Organisation said. Asia’s
diversification of oil imports, build third-largest economy was
more stockpiles and improve also boosted by better farm
conservation to enhance energy output, which grew 2.8%.
security, said analysts. The country
will see a continuous increase in oil
imports, as domestic production
cannot keep pace with the
fast‑growing economy, said Zhou
Dadi, a researcher at the Energy
Research Institute in Beijing.
China’s oil consumption rose to
220 million tonnes in the first six
months of  2010, a growth of
15% year on year.
10 acca elects
president
ACCA has elected
Mark Gold as president
for 2010–2011. Speaking about
his appointment, Gold said: ‘I
am passionate about the ACCA
Qualification and the way
in which it can provide
outstanding opportunities
for people globally. I am
very excited to represent
this great organisation
in the year ahead.
Dean Westcott and
Barry J Cooper were
also elected as deputy
president and
vice‑president
respectively.