Wednesday, May 11, 2011

Exit Edward The Accountant

The early departure of Edward Hunter (the accountant) from episode one of The Apprentice may, on the face of it, disappoint those in the profession.

However, it should be noted that Edward (for reasons best known to himself) neither used any of his accounting skills, nor did he profess any "regard" or "self esteem" for being an accountant.

Not everyone is suited to the profession.

However, to reject the skills and knowledge garnered from years' of hard work and exams is surely akin to throwing the baby out with the bath water?

Like it or loath it, if you have managed to qualify as an accountant then use those skills and knowledge to your best advantage.

Tuesday, May 10, 2011

Pension Deficit

In 2009 I wrote about the ICAEW's defined benefit pension scheme:

"The ICAEW have finally realised that the current arrangement, whereby subscriptions are increased each year to fund the pension black hole, is unsustainable. Therefore the ICAEW is going to cancel the final salary (defined benefit) pension scheme (closed to new members since 2000) next year (ie 2010)."

I noted then that the scheme had a £19M deficit.

Today Accountancy Age reports that the defined benefits pension scheme, which was closed on 30 June 2010, is expected to show a £22.6M deficit as of 31 March 2010 following the completion of an actuarial valuation.

It seems that funding contributions of £6M a year for three years, followed by £3.5M a year, will be made until the deficit is eliminated.

It is reasonable to assume that the long suffering members of the ICAEW will be expected to pay increased subscriptions to cover these funding contributions.

Wednesday, May 04, 2011

Global Ambitions Chinese Whispers

The dangers of the ICAEW's global ambitions are revealed by a question posed at the ICAEW council meeting by Alan Livesey.

Accountancy Age report that he raised the problem of students in China (where the ICAEW has recently opened a new office, to great fanfare) passing their exams without ever having paid their membership.

The institute's board was taken aback by the suggestion, and promised to investigate.