iab contact details · 2017. 6. 26. · iab london seminar date: thursday 18 may 2017 time: 9:30am...

2 IAB UPDATE MAY 2017

IAB contact detailsSuite 5, 20 Churchill Square, Kings Hill, West Malling, Kent ME19 4YU, United KingdomTelephone: +44 1732 897 750 Fax +44 1732 897 751 Email: [email protected] Website: www.iab.org.uk

Key staff at IAB Head OfficeExecutive Assistant – Membership Development: Kelly Orford 01732 897754 [email protected]

Professional Standards and Support Manager: Linda Oulton 01732 897756 [email protected]

Finance and Membership Administrator: Louise Harris 01732 897755 [email protected]

Office Manager: Chris Wooster 01732 897760 [email protected]

Systems and Data Manager: Thomas Bird 01732 897752 [email protected]

Education and Member Services Supervisor: Rianan Hogg 01732 897761 [email protected]

Education and Member Services Assistant: Georgina Wilder 01732 897753 [email protected]

Head of Awarding Body and Operations: Mandy Quantrill 01732 897762 [email protected]

Payroll services: a much undervalued professionAs I write this, payroll year-end is in full swing and I am considering my pricing strategy for the new financial year. In my opinion, the payroll industry, comprising both payroll software providers and payroll bureau, is seriously undervalued.

Most payroll professionals see auto-enrolment as yet another piece of legislation or business process that they are forced to deal with, but to me auto-enrolment feels like the end of a disruptive period, which started with HMRC’s introduction of RTI. My view is that RTI is actually a regular delivery of what is essentially a mix of HR employee and pay data from payroll to HMRC. Auto-enrolment will finish the job that RTI started by ensuring that the payroll software for hundreds of thousands of employers will effectively take on the surrogate role of HR software.

Accounting, payroll and administration of auto-enrolment will shortly become too complex for employers to handle by themselves, while remaining too important to get wrong.

Contrary to the increasing payroll complexity is the view held by many SME business owners. They are not used to paying high prices for this business-critical function and the presence of the free, government-backed Basic PAYE Tools (BPT) has defined the low end of the market, effectively handicapping payroll software from selling to over one million micro employers. So my prediction is that the payroll industry is well positioned for a price correction.

There are a great many payroll software products on the

market today that are free for less than nine users, which happens to be the upper limit for the BPT. The Pensions Regulator (TPR) estimates that 250,000 micro businesses use BPT. By comparison, the Office for National Statistics (ONS) estimates that there are over one million micro businesses employing between two to nine employees – the inference being that there’s a very large number of employers in the UK who are used to paying nothing for payroll software because BPT is present in the market.

But none of those one million businesses are exempt from auto-enrolment. They will all hit their staging dates between 2016 and 2018. Critically, though, HMRC have no plans to upgrade BPT to handle assessment. This decision is currently causing TPR to seriously contemplate creating and supporting its own standalone free assessment tool (at taxpayers’ expense). My view is that BPT will cease to be a practical alternative to commercial payroll software. If that’s true then payroll software will be permanently liberated from the presence of BPT in the market. The payroll industry will be able to re-evaluate and redefine its products and services into a large, national marketplace in which the demand for outsourcing and automating complex business processes is rapidly rising.

In summary, the prices bookkeepers charge for payroll services are going to have to increase, not only to account for the extra time and training needed to upskill their knowledge, but also to cover the costs of the inevitable software price increase.

Love to know your thoughts,

Sarah Palmer, FIAB, owner of Women Who Count

MAY 2017 IAB UPDATE 3

A message from Malcolm Trotter, IAB Chief ExecutiveIn this fast-changing environment it is more important than ever to seek to stay on top of key developments. On Thursday 18 May, in London, we have arranged another IAB Seminar specifically to help members to keep up to speed with Making Tax Digital, the updated UK GAAP (FRS 102 and 105), automatic enrolment, and much more. You will find more information about this event below. A further opportunity to get updated on various topics is afforded by The Bookkeepers’ Conference (of which the IAB is a sponsor). This is taking place on Monday 12 June in Solihull – see www.bookkeepersalliance.co.uk/bookkeepers-conference/ for more details and to book.

It is also the annual, IAB Council ’election season’. Details of those IAB members standing for election in

June can be found in this edition, as well as the AGM notice and abbreviated annual accounts for 2016.

Thank you as always for your continued support of the IAB. We have been greatly encouraged again this year by the continued high level of membership

renewals. We continually seek to add further value to your membership by developing new member benefits and trust that these more than outweigh the modest annual subscription fee. As a genuine not-for-profit body that is fully governed by its professional members you can be assured that the IAB’s overriding objective is to meet the needs of its membership and those it seeks to serve.

With all good wishes

Malcolm Trotter, IAB Chief Executive

Book your place at the IAB seminarThe IAB has arranged the first in a series of seminars for 2017. The seminar will cover topics including: Making Tax Digital, automatic enrolment, FRS 102 and 105, and much more.

The event will take place in London on Thursday 18 May 2017 and is an excellent way to gain updates for your own business or the business you work for and your clients.

Reasons to attend:1. Keep up-to-date and find out more about key legislation and developments affecting you, your clients or your employer. This includes Making Tax Digital, following on from the recent release of further information from HMRC in response to the consultations which took place last year.

2. Gain continuing professional development (CPD) points.

3. Network with fellow IAB members.

4. Gain advice on best practice and guidance on Anti-Money Laundering compliance.

Please find the full details of the seminar below.

IAB London seminarDate: Thursday 18 May 2017

Time: 9:30am – 4:30pm

Venue: The Wesley Euston Hotel & Conference Venue, 81-103 Euston St, Kings Cross, London NW1 2EZ

For further details about this seminar or to book contact the membership team: [email protected] or 01732 897750.

Take part in our annual surveyWe will shortly be closing our annual survey for the 2016 membership year, and your response would be much appreciated. We are continuously working to provide you with the best service and to gain your views on the IAB.

A link to complete the survey can be found here: https://www.surveymonkey.co.uk/r/9JHYCM9

Since the last annual survey, we have added to our programme of seminars by holding events around the country including in Manchester and Edinburgh; represented your views to HMRC on the plans for Making Tax Digital by attending several meetings with HMRC and formally responding to the consultation documents that were released last year; and increased the benefits and support available to you to assist you with areas such as automatic enrolment.

Thank you in advance for your participation. Your feedback is really important to us and will further assist us to ensure we are providing you with the support you need.


Lyn Eames, FIAB

Throughout my career I have had a variety of roles in education and training, both in the UK and overseas. This has given me an

in-depth understanding of the sector nationally and an appreciation from an international perspective.

My career began as a lecturer in Further Education specialising in bookkeeping and accounts, so my association with the IAB goes back many years. I became a manager of curriculum teams and had a leading role in setting up the UK’s first Centre of Vocational Excellence in Accountancy and Finance.

After many years in FE, I was then selected to work on a number of Government education initiatives becoming an independent education consultant. The focus of this work has always been on quality assurance and improving performance. I have had numerous advisory roles with a range of education providers and have worked collaboratively with a number of stakeholders, including many employers. I have worked strategically, with senior management and leadership teams, as well as supporting curriculum teams, to improve the quality of teaching, learning and assessment. I have also been fortunate to work in India, giving professional support to teachers as they implement new qualifications and programmes, and advising institutions on ways of working with UK awarding organisations.

I have always had a core belief that education and training should be fit for purpose in meeting domestic and global challenges. Having been involved with the IAB/IAAP for many years, I feel both organisations have important roles to play in offering new opportunities and employment options to help meet these challenges.

Sarah Palmer, FIAB

Sarah has been running her own practice, Women Who Count Ltd, since 2009 and has been a member of the IAB since 2012.

Be preparedIs your business ready to scale up and help more employers with auto enrolment? Paul Budgen reportsThis year, the Pensions Regulator estimates that as many as 800,000 small and micro employers could be getting to grips with auto enrolment for the first time. That’s around a 50% increase compared to last year.

So what does this mean for you? Bookkeepers, accountants, payroll and other financial professionals all have a key role to play. How do we know? Our research revealed that 74% of small and micro employers are expecting to turn to intermediaries for help with auto enrolment. And of course, this finding isn’t surprising. For many employers of this size this will be their first experience of offering a workplace pension. They’re unlikely to be a pension expert, and indeed most won’t want to be. Many of them will want to get assistance from a professional so they can focus on what they do best – running their business.

With demand for your services likely to increase, how can your business scale up to ensure you can continue to say ‘yes’ to employers seeking help? You may think this involves increasing your wage bill or having to completely rethink your business model. But it doesn’t. Our two innovations, NEST Connect and NEST web services can help. They’re designed to drive efficiencies and help you streamline your work, offering you an easy and straightforward way to scale up. And, they’re free to use.

NEST Connect is an ideal solution for your business. This free online hub will enable you and your colleagues to build a direct relationship with NEST and act as delegates for multiple clients. Using the hub, you can see all your clients on a personalised dashboard, using one login, and provide a complete service from set-up to on-going maintenance. This removes the need for individual passwords for each client enabling you and your team to

manage everything from one place, saving both time and money.

But does it actually work? We’ve worked with a number of intermediaries to find out how NEST Connect helps them. They explained that being able to approach clients with a ready-made business model saved them both time and resource across the auto enrolment lifecycle. And, professionals are voting with their feet. Since its launch in November 2014, over 15,000 intermediaries have signed up.

Looking after payroll and auto enrolment for your client? With NEST web services, you can set up and manage your client’s NEST account seamlessly through payroll software. This innovation takes the heavy lifting out of auto enrolment by automating many of the processes. The technology removes the need to manually input data as it uses existing payroll information. This helps to create efficiencies for your business by reducing both administration time and the risk of human error, leaving you to help more clients in less time.

Professionals we’ve spoken to tell us that NEST web services saves them time, especially as they’re now able to complete many of the processes in the click of a button. One of the other most notable benefits for them was that the technology also removes the need for the checking and re-checking process necessary for manually inputted data. And, consequently, it also removes the costly re-work time required if the wrong file or incorrect information is uploaded.

But, as they say, the proof of the pudding is in the eating. So don’t just take my word for it, find out more about the innovations, and how you can sign up, on our website www.nestpensions.org.uk

• Paul Budgen is Director of Business Development at NEST


Prior to this Sarah has run several other businesses, in both the service and retail sectors. This, coupled with her upbringing in a family business, has shaped her belief that bookkeepers are the best-placed professionals to empower business owners around their day-to-day finances.

In 2012, Sarah became the UK licence holder for Pure Bookkeeping, an AU franchise that supports bookkeepers to develop their own practices. Having worked with bookkeepers overseas Sarah is keen to take this invaluable experience and help members to develop their own practices so more business owners are able to benefit from the service bookkeepers provide.

Sarah also writes her popular column for the IAB publications, called The Word from Sarah, which focuses on issues within the industry.

Jane Turley, MIAB AIAAP

I have worked within bookkeeping since 2006; prior to this I worked in retail. My responsibilities have varied, but my strength has always

been leadership and management, which led me to being involved with bookkeeping. In retail I gained qualifications and experience within customer service and have gone on to use this knowledge in my current role. I manage my own bookkeeping practice, called Atlas Bookkeeping. The main part of my job is dealing with clients and the day-to-day needs of their businesses. I enjoy this part of my role the most, every day is a challenge and it is always unpredictable. After being elected a member of Council in 2011 I became the spokesperson for the IAB at the Employers Payroll Group at HMRC and only recently gave up this position. Meetings take

part on a quarterly basis, where various governing bodies are heavily involved in the changes that HMRC bring into force. I fit my working life around a busy family life as well as running a separate business two days a week. I enjoy the challenge of being a working mum and I feel that by continuing my work on Council I can offer fresh opinions to an established group of people, while learning and gaining more experience to further my career.

Juan Carlos Venegas, MIAB FIAAP

Juan Carlos is a public accountant, counter fraud specialist, certified forensic investigation professional and finance trainer.

He is also the author of ‘How to Become an Expert Witness’, ‘Anti-Money Laundering’ and ‘Fraud and Corruption’ for Nelson Croom, and has been a guest speaker at a number of international conferences on fraud.

Juan Carlos founded Fiscal Accounts in 2003, an accountancy firm in the UK specialising in accounting, taxation, fraud prevention, detection and investigations, and forensic accounting. He advises clients on financial management, budgeting and strategy implementation, fraud prevention and detection and internal control.

He is an international Finance Trainer for different international organisations and their clients. Areas of training include financial risk management, forensic auditing, fraud prevention and detection, money laundering, budgeting and costing, financial management, IFRS, banking, risk management, cash management and treasury, data analysis, financial modelling.

In 2013, he became the UK representative of the International Institute of Certified Forensic Investigation Professionals (IICFIP) and an accredited tuition centre in the UK and Europe. He is also an executive director and the treasurer of the Institute of Counter Fraud Specialists (ICFS) in the UK.

Jila White, FIAB AIAAP MA BA

I have served on the IAB Council as a Member for six years and have been IAB Vice Chairman for the past 18 months. In the past three

years I successfully gained my Level 7 qualification (MA) in International Human Resource Management, which I hope I can put to good use in my professional career. In the meantime, I continued giving my full focus to the IAB as well as taking up another Directorship of a Property Investment company.

My work experience spans from commercial sales and marketing to retail banking and accounting and finance. I have gained my accounting qualifications through IAB exams and before that I had successfully completed an accounting exam at university level as part of my Level 5 (BA) pathway in Business and finance.

I feel IAB has done a lot for me in terms of boosting my industry knowledge and so my self-confidence. I believe I am deeply indebted to IAB in this respect. By offering my free time to IAB, I hope I have contributed to help it grow stronger and more successful in today’s very competitive industry.

My intention is to give back to IAB as much as it has given me. I am looking forward to continue to serve the IAB Council if re-elected at the next AGM.

Meet the election candidates


INTERNATIONAL ASSOCIATION OF BOOKKEEPERSANNUAL GENERAL MEETING

NOTICE IS GIVEN that the ANNUAL GENERAL MEETING of International Association of Bookkeepers (the “Company”) will be held at 10.45am on Wednesday 28 June 2017 at Canning House, 14/15 Belgrave Square, London SW1X 8PS to consider the following resolutions of which numbers 1 to 7 will be proposed as ordinary resolutions and number 8 will be proposed as a special resolution.

1. To receive the report and accounts for the year ended 31 December 2016.2. To elect Sarah Palmer as a member of Council.3. To elect Juan Carlos Venegas as a member of Council.4. To re-elect Jila White as a member of Council.5. To re-elect Jane Turley as a member of Council.6. To re-elect Lyn Eames as a member of Council.

7. THAT for the purposes of section 175 of the Companies Act 2006, the members of council shall have the power to authorise any matter which would or might otherwise constitute or give rise to a breach of the duty of a member of council under that section to avoid a situation in which they have, or can have, a direct or indirect interest that conflicts, or possibly may conflict, with the interests of the Company.

8. THAT: (a) the articles of association of the Company be amended by deleting all of the provisions of the Company’s memorandum of association which, by virtue of section 28 of the Companies Act 2006, are to be treated as provisions of the Company’s articles of association; and

(b) the articles of association contained in the document marked ‘A’ submitted to this meeting, and for the purposes of identification, signed by the Chair, be approved and adopted as the articles of association of the Company in substitution for and to the exclusion of all the existing articles of the Company.

By order of the Council Janet Jack, Chair of Council

Tuesday 25th April 2017 Registered office: Suite 5, 20 Churchill Square, Kings Hill, West Malling, Kent ME19 4YU

Note: A member entitled to attend and vote at the meeting is entitled to appoint a proxy to attend, speak and vote at the meeting in their place. A proxy does not need to be a member of the Company. To appoint a proxy, please complete the proxy form, following the instructions about its completion and return.

EXPLANATORY NOTES TO NOTICE OF GENERAL MEETINGIn addition to the usual business of receiving the accounts and electing/re-electing directors, two additional items of business are being proposed at this year’s AGM.

Directors’ interestsThe Companies Act 2006 (the “Act”) sets out directors’ general duties. The provisions largely codified the

previously existing law, but with some changes. Under the Act, directors must avoid a situation where they have, or could have, a direct or indirect interest that conflicts, or possibly may conflict with the Company’s interests. The requirement is very broad and could apply, for example, if a member of council is or becomes a director, member of council or trustee of another organisation. The Act allows directors of private companies to authorise conflicts and potential conflicts where members have agreed to allow this.. The proposed resolution would therefore give the members of council authority to approve such situations.

There are safeguards which will apply when members of council decide whether to authorise a conflict of potential conflict. First, only independent members of council (ie those who have no interest in the matter being considered) will be able to take the relevant decision, and secondly, in taking the decision the members of council must act in a way they consider, in good faith, will be most likely to promote the Company’s success. The members of council will be able to impose limits or conditions when giving authorisation if they think this is appropriate. The authority will take effect from the date on which the resolution is passed.

New articlesThe second matter is that Council recommends that a new constitution (articles of association) is adopted. Council has taken some time to consider and discuss the proposed changes, which will bring the articles up to date. External advice has been sought.

The main changes to the articles are as set out below:

Approach• The new articles are based on the latest government standard model articles for companies limited by guarantee without a share capital.

• Many provisions from the current constitution have been kept, where they were still relevant, but are now expressed in more modern language and reflect the latest legal position.

The memorandum • The memorandum of association is now only a list of the subscribers. The clauses from the memorandum which need to be kept have been inserted at the beginning of the articles.

• The objects have been retained, with slightly updated wording in some places.

• The limitation of liability, non-distribution of income and winding up clauses have been rewritten in more modern language – the meaning is much as before.

Directors• Updated articles in relation to conflicts of interest and remuneration have been inserted which reflect current law and practice. Council members will not be paid for acting as council members but may be paid for other services provided to the Company, as long as those payments are authorised by Council.


• Procedural matters such as quorum for meetings and the Chair having a casting vote are unchanged.

• There are some new provisions in relation to the termination of office of a director, which reflect current practice.

Membership and general meetings• If amounts owing by members to the Company remain unpaid after three months, then there are restrictions on attending and voting at members’ meetings.

• The articles dealing with general meetings have been updated to reflect the Companies Act 2006.

Administration• Additional provisions about notices are included.

• A few new provisions from the model articles have been included in this section eg on indemnity and insurance.

A copy of the proposed new articles can be viewed on, and downloaded from, the Restricted Area of the Company’s website: https://www.iab.org.uk/users/login

INTERNATIONAL ASSOCIATION OF BOOKKEEPERS

FORM OF PROXY

(please print name and address)

I.................................................................of ..................................................................................................................

............................................................. Postcode ...........................................................................................................

being a member of the Company, appoint ………............................... ............................................................................

of ....................................................................................................................................................................................

or ....................................................................................................................................................................................

of ....................................................................................................................................................................................

or the Chair of the meeting as my proxy to vote for me at the Annual General Meeting of the Company to be held on Wednesday 28 June 2017 and at any adjournment of that meeting. This form is to be used in respect of the resolutions mentioned below as follows:-

(Please mark with an ‘X’)

Resolutions For Against At Discretion Vote Withheld1. To receive the report and accounts 2. To elect Sarah Palmer as a member of Council 3. To elect Juan Carlos Venegas as a member of Council 4. To re-elect Jila White as a member of Council 5. To re-elect Jane Turley as a member of Council 6. To re-elect Lyn Eames as a member of Council 7. To allow Council to authorise conflicts of interest of council members 8. To adopt new articles of association

Signed........................................................ Dated ............................... Membership Number.......................................

This proxy form must be received by no later than 10.45am on Monday 26 June 2017. You can return it in any of the following ways:

• by post to Suite 5, 20 Churchill Square, Kings Hill, West Malling, Kent ME19 4YU;

• by email to [email protected]

Notes:1. As a member of the Company you have the right to attend, speak and vote at the meeting. If you cannot or do not wish to attend the meeting but still want to vote you can appoint someone to attend the meeting and vote on your behalf. That person is known as a “proxy”. You can use the proxy form to appoint the person chairing the meeting or someone else as your proxy. Your proxy does not have to be a member of the Company.

2. If you wish to appoint as a proxy someone other than the person chairing the meeting, please delete the words “The Chair of the meeting” and insert the name of the other person (who need not be a member of the Company). You must initial all alterations that you make to the proxy form.

3. The completion and return of the proxy form will not prevent you from attending the meeting and voting in person should you subsequently decide to do so.

4. If you wish your proxy to cast your vote for or against the resolution you should insert an “X” in the appropriate space. In the absence of instructions or if you put an “X” in the “At Discretion” column your proxy may vote or abstain from voting as they think fit on the specified resolution, and, unless instructed otherwise, may also vote or abstain from voting as they think fit on any other business (including on a resolution to amend a resolution, to propose a new resolution or to adjourn the meeting) which may properly come before the meeting.

5. The “Vote Withheld” option is provided so that you can instruct your proxy to abstain from voting on a particular resolution. A “Vote Withheld” is not a vote in law and will not be counted in the calculation of the proportion of the votes “for” or “against” a resolution.

6. You (or your attorney) must sign and date the proxy form and insert your membership number in the space provided.


Balance Sheet As at 31 December 2016Note 2016

£2015

£Fixed assetsIntangible assets 4 30,301 13,182Tangible assets 5 5,438 3,620Investments 6 327,785 316,999

363,524 333,801Current assetsStocks 7 606 1,740Debtors: amounts falling due within one year 8 93,267 106,307Cash at bank and in hand 9 313,870 316,564

407,743 424,611Creditors: amounts falling due within one year 10 (123,982) (100,916)Net current assets 283,761 323,695Total assets less current liabilities 647,285 657,496Net assets 647,285 657,496Capital and reservesRevaluation reserve 30,732 17,739Profit and loss account 616,553 639,757

647,285 657,496

Registered number: 01119378

INTERNATIONAL ASSOCIATION OF BOOKKEEPERS

(Formally International Association of Bookkeepers Limited and previously The International Association of Book-Keepers)

Unaudited Financial statements For the Year Ended 31 December 2016

The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of

financial statements.

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The Company has opted not to file the profit and loss account in accordance with provisions applicable to companies subject to the small companies’ regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 25th April 2017

Mrs. J. Jack Mrs. J. White Director Director

Notes to the Financial Statements

For the Year Ended 31 December 2016

1. General information

International Association of Bookkeepers, formally International Association of Bookkeepers Limited and previously The International Association of Book-Keepers (‘the Company’) is a private company limited by guarantee without share capital incorporated and domiciled in the United Kingdom under the Companies Act 2006 (Registration number 01119378).

Statement of Changes in Equity For the Year Ended 31 December 2016

Revaluation reserve

Profit and loss account

Total equity

£ £ £

At 1 January 2015 13,579 688,174 701,753

Comprehensive income for the year

Loss for the year - (48,417) (48,417)

Unrealised surplus on fixed asset investments 4,160 - 4,160

At 1 January 2016 17,739 639,757 657,496

Comprehensive income for the year

Loss for the year - (23,204) (23,204)

Unrealised surplus on fixed asset investments 12,993 - 12,993

At 31 December 2016 30,732 616,553 647,285


Each of the members is liable to contribute an amount not exceeding £1 towards the assets of the company in the event of liquidation.The address of the registered office is Suite 5, 20 Churchill Square, Kings Hill, West Malling, Kent, ME19 4YU.

2. Accounting policies2.1 Basis of preparation of financial statementsThe financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.The following principal accounting policies have been applied:2.2 Revenue recognitionTurnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:Sale of goodsTurnover from the sale of goods is recognised when all of the following conditions are satisfied:• the Company has transferred the significant risks and rewards of ownership to the buyer;• the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;• the amount of turnover can be measured reliably;• it is probable that the Company will receive the consideration due under the transaction; and• the costs incurred or to be incurred in respect of the transaction can be measured reliably.Rendering of servicesTurnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of

completion of the contract when all of the following conditions are satisfied:

• the amount of turnover can be measured reliably;

• it is probable that the Company will receive the consideration due under the contract;

• the stage of completion of the contract at the end of the reporting period can be measured reliably; and

• the costs incurred and the costs to complete the contract can be measured reliably.

2.3 Intangible assetsIntangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

2.4 Tangible fixed assetsTangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Fixtures and fittings - 33.33%

Office equipment - 33.33%

Computer software and network

- 33.33%

The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Profit and loss account.

2.5 Revaluation of tangible fixed assetsIndividual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the Balance sheet date.

Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in the Profit and loss account unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

2.6 Valuation of investmentsInvestments in listed company shares are remeasured to market value at each Balance sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.

2.7 StocksStocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

2.8 DebtorsShort term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.9 Cash and cash equivalentsCash is represented by cash in hand and deposits with financial institutions repayable without penalty


on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.2.10 Financial instrumentsThe Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.2.11 CreditorsShort term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.2.12 Foreign currency translationFunctional and presentation currencyThe Company’s functional and presentational currency is GBP.Transactions and balancesForeign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.2.13 Operating leases: the Company as lesseeRentals paid under operating leases are charged to the Profit and loss account on a straight line basis over the lease term.2.14 PensionsDefined contribution pension planThe Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

3. Employees

The average monthly number of employees, including the directors, during the year was as follows:

2016 No.

2015 No.

Directors 1 2

Employees 12 9

13 11

4. Intangible assets

Website develop-ment expenditure

Intellectual property

Total

£ £ £

Cost

At 1 January 2016 41,008 5,240 46,248

Additions 27,110 - 27,110

At 31 December 2016 68,118 5,240 73,358

Amortisation

At 1 January 2016 27,826 5,240 33,066

Charge for the year 9,991 - 9,991

At 31 December 2016 37,817 5,240 43,057

Net book value

At 31 December 2016 30,301 - 30,301

At 31 December 2015 13,182 - 13,182

5. Tangible fixed assets

Fixtures and fittings

Office equipment

Computer software and

network

Total

£ £ £ £

Cost or valuation

At 1 January 2016 4,860 11,451 58,517 74,828

Additions 332 4,304 - 4,636

At 31 December 2016 5,192 15,755 58,517 79,464

Depreciation

At 1 January 2016 3,177 9,514 58,517 71,208

Charge for the period on owned assets

936 1,882 - 2,818

At 31 December 2016 4,113 11,396 58,517 74,026

Net book value

At 31 December 2016 1,079 4,359 - 5,438

At 31 December 2015 1,683 1,937 - 3,620

The contributions are recognised as an expense in the Profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.2.15 Interest incomeInterest income is recognised in the Profit and loss account using the effective interest method.

2.16 TaxationTax is recognised in the Profit and loss account, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.The current income tax charge is calculated on the basis of tax rates


6. Fixed asset investmentsListed investments

£

Cost or valuation

At 1 January 2016 316,999Disposals (2,207)Revaluations 12,993At 31 December 2016 327,785Net book value

At 31 December 2016 327,785At 31 December 2015 316,999

Subsidiary undertakingsThe following were subsidiary undertakings of the Company:

Name Country of incorporation

Class of shares Holding Principal activity

International Association of Accounting Professionals

United Kingdom Limited by guarantee

100 % Educational support services

International Awarding Body

United Kingdom Limited by guarantee

100 % Educational support services

The aggregate of the share capital and reserves as at 31 December 2016 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Aggregate of share capital and reserves

Profit/(loss)

£ £International Association of Accounting Profes-sionals

43,077 10,253

International Awarding Body - -43,077 10,253

Listed investments The fair value of the listed investments at 31 December 2016 was £327,785 (2015 -£316,999).

7. Stocks2016 2015

£ £Goods for resale 606 1,7408. Debtors

2016 2015£ £

Trade debtors 75,668 87,500Other debtors 1,877 1,735Prepayments and accrued income 15,722 17,072

93,267 106,3079. Cash and cash equivalents

2016 2015£ £

Cash at bank and in hand 313,870 316,56410. Creditors: Amounts falling due within one year

2016 2015£ £

Trade creditors 47,724 28,270Amounts owed to group undertakings 31,702 18,311Corporation tax 156 95Other taxation and social security 7,612 7,344Other creditors 9 -Accruals and deferred income 36,779 46,896

123,982 100,916

and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

2.17 Exceptional itemsExceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

11. Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £36,293 (2015: £38,295). Contributions totalling £Nil (2015: £3,063) were payable to the fund at the balance sheet date.

12. Related party transactions

The Company has adopted the exemption from disclosure of related party transactions with its subsidiaries under Financial Reporting Standard 102 on the basis of its subsidiary undertakings being wholly owned.

The following related party transactions of the Company occurred during the year:

During the year, a total of £4,971 (2015: £3,481) travel expenses were reimbursed to directors.

During the year the Company purchased £960 of invigilation services, £4,536 of consultancy services and paid £14,471 in commission to Universal Admission Services UK Ltd, a company controlled by a close family member of a director. (2015: purchased £600 of invigilation services, £4,928 of consultancy services and paid £11,994 in commission).

A honorarium payment of £1,500 was paid to a director for their services as Chair (2015: £1,500).

£14,603 was paid to a director for their website development services.

13. First time adoption of FRS 102

The policies applied under the entity’s previous accounting framework are not materially different to FRS 102 and have not impacted on equity or profit or loss.


Free offer to grow your business in 2017As a special offer for IAB professional members, Acacia is offering a free audit of your business image to give you a head start in 2017. This audit will provide you with recommendations you can action immediately in order to grow your business further.

To get you free audit just visit http://www.acaciauk.net/iabmembersoffer

IAB professional members’ discounts The IAB has negotiated discounted rates with Acacia for marketing communications work. This includes a specially discounted rate for all IAB Professional Members on logo, literature and website design.

For more information email François Reynier at [email protected] with ‘IAB Professional Members discounts’ in subject line.

Contractors urged to seek IR35 status to resolve public sector confusionIPSE, the Association of Independent Professionals and the Self Employed, has advised all contractors to check their IR35 status in order to resolve the confusion and uncertainty over the newly implemented public sector rule changes.

From 6 April, the start of the financial year, there was a change

in the way IR35 status determinations are made in the public sector.

It is now the job of the public sector organisation to determine the IR35

status of engagements rather than the contractor, as

was previously the case. If the public sector organisation deems the engagement to be inside IR35, they apply taxes to the contractor in the same manner as an employee.

Before and immediately after these changes, there has been considerable uncertainty and confusion. Many contractors find themselves being placed in an inaccurate tax bracket.

HMRC’s online Employment Status Service (ESS) tool, released last month, was designed to provide clarity around IR35 status and was released to assist public sector clients and agencies in making IR35 determinations.

Because of the prolonged delay, many public sector bodies have been taking a blanket approach and incorrectly deeming many engagements to be inside IR35. IPSE is advising all contractors in this situation to use the ESS tool and show the results to their clients.

Join the new IAB Facebook group to gain further support for your careerWe have launched a new Facebook group for IAB students and professional members. The aim of the group is to provide further support to you and a platform where you can interact with fellow members and get to know each other. The group can be used for discussions relevant to studying or the bookkeeping profession, and can be used to post any queries you may have. We hope this group will provide more support to you in your studies or careers. To request to join the group visit: https://www.facebook.com/groups/IABmembersgroup/.

IAB wins Professional Institute of the Year award for fourth time in a rowFor the fourth consecutive year, International Association of Bookkeepers has been voted Professional Institute of the Year in the annual BKN Bookkeeping Awards.

The BKN awards are voted for by bookkeepers, accountants, business owners and members of The Bookkeepers Network (BKN).

“We were delighted to win this award over the past few years, so you can imagine our pride to have repeated that success for a fourth time,” said Malcolm Trotter, Chief Executive of the IAB. “It is an important accolade as it is voted for by our peers and those businesses that use the services of bookkeepers, so those who vote have a vested interest in supporting bodies that promote the highest standards in the profession.

“To have won the Professional Institute of the Year award four years in a row reflects the hard work and professionalism of all the team at the IAB, and I congratulate them on this achievement and thank members for their continued support.”

The IAB’s awards have seen it enter

the BKN’s Bookkeeping Hall of Fame, which can be viewed at www.bookkeepers.network/bookkeeping-hall-of-fame.

IAB sponsors top awardThe annual PQ magazine awards night is one of the highlights of the accountancy calendar, and the IAB is a strong supporter of the event, this year sponsoring the Study Resource of the Year category. This year’s event took place at London’s Café de Paris, where the IAB’s Chief Executive was on hand to present a ‘PQ’ to the ACCA-X team, this year’s winners. Malcolm Trotter is pictured with ACCA-X’s Mark Kenhard.

iab contact details · 2017. 6. 26. · iab london seminar date: thursday 18 may 2017 time: 9:30am...

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