CA Magazine

February 2010

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Reaching the limits of charity

Statutory social services are increasingly being provided at less than cost by the voluntary sector. This offers short-term savings for the public purse, but is it sustainable?

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Is the CA futureproof?

Douglas Nisbet ponders the big challenges that lie ahead for the next generation of CAs and how ICAS is preparing to help them

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'Robust provisioning approach is essential', say bankers

Top central bankers are increasing pressure for speedy reform of the accounting rule blamed for amplifying the credit crunch and warned it must not widen the scope of a much-criticised asset valuation method

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UK finance sector rise was 'less than expected'

A study by PricewaterhouseCoopers and the CBI says activity in the UK’s financial services sector rose less than expected in the last quarter of 2009 and more firms now expect it to fall

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AADB investigates ICAS member in relation to Equitable Life

The Accountancy and Actuarial Discipline Board has launched an investigation under its disciplinary scheme for the accountancy profession into the conduct of an ICAS member in connection with matters related to the financial statements of Equitable Life Assurance Society in 1999

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CAs awarded in New Year Honours List

Former Financial Reporting Council chief Paul Boyle has been awarded an OBE in New Years Honours list – one of several CAs to be honoured

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Prince Charles hosts accountancy forum

Members of 14 global accountancy bodies met with The Prince of Wales at a forum at St James’ Palace

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FD of the Year winners to be named

The winners of the Finance Director of the Year Awards are set to be named at a gala luncheon at the Edinburgh International Conference Centre later this month

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The profession needs you...!

The hunt is on among the best universities in the UK to find Britain’s most promising accountancy and economics student

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Accounting bodies merger approved

The vast majority of the members of Royal NIVRA and NOvAA have agreed to a merger between the two professional accounting bodies in the Netherlands. NIVRA and NOvAA simultaneously organised member meetings in Amsterdam and Utrecht on 16 December

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Scotland witnesses soaring levels of business fraud

The amount of money lost by businesses and the public sector in Scotland to larger frauds increased last year by 670 per cent, according to new research by BDO

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Gimme shelter

Venture capital trusts are set to move further into the spotlight as the tax clampdown gnaws at investors, Angus McCrone predicts

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PwC's Edinburgh team wins 'Store Wars'

Barnardo’s received a boost when staff at PricewaterhouseCoopers’ Edinburgh office helped increase the children’s charity’s takings by more than 1,300 per cent at its Nicolson Street store

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Win official hospitality passes to The Open

In 2010, The Open Championship comes to St Andrews, one of the most famous golf venues in the world. CA Magazine has teamed up with corporate hospitality specialists Sodexo Prestige to offer readers the chance to win two Open Golf Official Hospitality passes for The Open Championship on Saturday 17 July

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Business travel

Delays as airport security tightens

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Letters: Bonuses defended...

In response to November’s letter of the month, bankers’ bonuses are much misunderstood

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Empty handed

The demand for charities’ services may be increasing, but income is dropping. They will need to look at new ways of making and saving money if they want to survive in the new economic landscape

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Charities and tax

David Collier and Lynn Gemmell explain why charitable status does not mean an end to tax headaches

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Make your marque

Richard Goslan finds that intellectual assets can take many forms, but they should never be ignored

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Don't sit on assets

It’s time to give intangibles the attention their true value deserves

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Realising the value of intellectual assets

Stephen Robertson argues that smart use of intangibles can help a business to raise finance or create new sources of cash flow

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Word on the tweet

Guy Clapperton explains why social media such as Twitter and Facebook can be valuable business tools in the professional world

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Interview: Donald Macleod

From humble beginnings, Donald Macleod has risen through the ranks to become president and CEO of US giant National Semiconductors – but still has a place in his heart for Scotland

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Reform brings opportunity

Jim Mather MSP explains why modernising the law on arbitration will not only bring Scotland’s law up to date, but also provide an opportunity to settle international disputes in the Scottish system

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Business faces up to new tax relief regime

Long-established tax reliefs have been shaken up, affecting research and development, capital allowances, venture capital and film ventures

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Enterprise investment scheme rule change hits partnerships

HMRC has announced that it has no option but to strictly apply the legislation requiring a qualifying Enterprise Investment Scheme (EIS) trade to be carried on by a company or its 90 per cent subsidiary. This will impact on companies trading in partnership, or as a member of an LLP, as under these criteria, relief will not be due

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New rules put a squeeze on size of nest eggs

Anti-forestalling rules aim to discourage high-income individuals from taking undue advantage of pension tax relief before restrictions come into force in 2011

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Energy just got smarter

One of the main talking points in the energy sector just now is ‘getting smart metering right’. But what is it about smart metering that businesses in particular have to ‘get right’?

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Audit firms pass the test, but...

While the Audit Inspection Unit has praised the overall quality of auditing in the UK, it has also flagged up areas of concern where further action is needed

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Priority sectors for 2010/11 announced

The Financial Reporting Review Panel, the body that looks into potential breaches of accounting standards, has announced which sectors it will be treating as priorities through 2010/11

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FRC says improvement is needed in M&A accounting

Merger and acquisition (M&A) accounting is costly and difficult for companies, and of little use to investors, according to a study carried out by the Financial Reporting Council

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Success in segments

The Financial Reporting Review Panel (FRRP) of the Financial Reporting Council is concerned about how companies are reporting the performance of key parts of their business in the light of the introduction of IFRS 8, Operating Segments

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Auditing Practices Board: update

New guidance to auditors

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FRC consults on its priorities and funding

The FRC has published its priorities for 2010/11 and its funding proposals. The paper “Draft Plan and Levy Proposals 2010/11” is on the FRC website and responses are requested by 10 March 2010

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Pensions update

New requirements for trustee knowledge and understanding now, in force

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POB in survey call

The Professional Oversight Board has launched a questionnaire relating to the provision of accounting services by members of the UK professional accountancy bodies, as part of its review of the monitoring regimes for members providing non regulated accountancy services

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In the hot seat

A new guide from ICAS provides advice for company directors to help them face the challenges and responsibilities of their role

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The first step on the road to recovery

Amidst the expected flurry of administrations and liquidations last year, a previously little-used insolvency procedure – the company voluntary arrangement — emerged. Blair Nimmo describes the procedure and outlines the mechanics of the process and the benefits it can offer to both a company and its creditors

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What goes around...

Share buybacks are a way for companies to return cash to their investors, but as Alpa Dhanani and Roydon Roberts discovered, some stakeholders question their motives for doing so

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Claim your place in the sunshine

Changes coming in this April will have a major effect on the tax status of furnished holiday lets, both in the UK and elsewhere in Europe. Time is running out for any retrospective claims

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How does yours measure up?

In the first of a series of articles covering defined contribution (“money purchase”) pension schemes, Paul Provan takes a look at the new “Pensions Quality Mark” launched last year by the National Association of Pension Funds

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Where do charities fit in?

Christine Scott reports on a debate over the place charities may take in the UK’s future system of financial reporting

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Regulation is the key

ICAS was invited to give evidence to the Scottish Parliament’s Justice Committee at the start of last month on the proposed Legal Services (Scotland) Bill

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Green procurement guide for business

Sustainability expert Envirowise is offering ICAS members and other business people a step-by-step approach to greener procurement – in the form of a free online guide

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Why discipline is not just a matter for ICAS

It is true, many people have not yet heard of the AADB, but CAs in particular should be aware of this important body

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Investing in people pay off

Royal Dutch Shell has been confirmed as an accredited employer for the purposes of continuing professional development of ICAS members

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Registration now open for diploma

The Institute of Internal Auditors – UK and Ireland (IIA) has changed the structure of the pathways to its quali f i cations, introducing the opportunity for CCAB-qualified accountants (or equivalent) to successfully complete the IIA Diploma in Internal Audit Practice and obtain PIIA designation through a single case-study module and a professional experience journal. This means the final award can be achieved within six months

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Northern delights

Members and guests at the ICAS Grampian Area dinner in November last year raised £5,300 for good causes with a prize draw. The amount was split equally between SPARKS and “Fighting For Sight”, a Grampian-based charity housed at Aberdeen Royal Infirmary

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In memoriam: Norman Hunter Smart

William Norman Hunter Smart, who served as president of the Institute of Chartered Accountants of Scotland in 1978-79, was born on 25 May 1921 and educated at George Watson’s College in Edinburgh

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Not what the doctor ordered

A new approach to collecting unpaid tax should be applied consistently. That’s the warning from ICAS to HM Revenue & Customs after two campaigns by HMRC appeared to take a very different approach to the medical profession and fish and chip shops

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Workforce health

Workforce health is the subject of a discussion event to be held at the ICAS offices, Edinburgh on Thursday 11 February

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