Icfe Course Design Guidelines

ICFE Guidelines How to Design a Teaching Course for ICFE Examination Preparation

ICFE Guidelines How to design a teaching course for ICFE Examination Preparation Contents Page Workshop Aim Introduction

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1.

CONTENT 1.1 Subject Content

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1.2

Language 1.2.1 Language level 1.2.2 Language syllabus

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1.3

Skills 1.3.1. Receptive skills: reading and listening 1.3.2 Productive skills: writing and speaking

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2.

MATERIALS 2.1 Subject-based Materials 2.1.1 Specialist texts 2.1.2 Texts for non-specialists 2.1.3 Finance/accounting-related websites 2.1.4 Journals 2.1.5 Podcasts

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2.2

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Language materials 2.2.1 Finance/accounting-related language textbooks 2.2.2 Finance/accounting-related language websites 2.2.3 English language materials 2.2.4 Dictionaries

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COURSE DESIGN 3.1 Hours 3.2 Course Structure 3.3 Sample Lesson Plan

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EXAMINATION PREPARATION TIPS 4.1 General 4.2 Reading 4.3 Writing 4.4 Listening 4.5 Speaking

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Appendix A Topics in international finance and accounting Appendix B Can Do Summary for C1 and B2 CEFR Appendix C Ideas for an ICFE Preparation Course

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ICFE Guidelines How to design a teaching course for ICFE Examination Preparation Workshop Aim •

to familiarise trainers with the content and skills required to be successful in the Cambridge International Certificate in Financial English (ICFE)

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to explore course design principles for an ICFE preparation course

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to work through content-specific elements and relevant language skills as outlined in the ICFE Course Design Manual

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to set up the framework of a training session for providers who wish to offer preparation courses for ICFE

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to ensure trainers are aware of their roles and responsibilities when representing Cambridge ESOL in this ICFE programme

Introduction What is ICFE? The Cambridge ESOL International Certificate in Financial English (ICFE) is an examination set at Levels B2 and CI of the Common European Framework of Reference for Languages. It assesses language skills in the context of finance and accounting. ICFE assesses whether candidates whose first language is not English have an adequate level of English to function effectively in the international finance and accounting environment. ICFE is a Cambridge ESOL examination, produced and assessed by University of Cambridge ESOL Examinations in collaboration with the Association of Chartered Certified Accountants (ACCA). It has four papers: Reading, Writing, Listening and Speaking. ICFE examinations are held each year in May and November. Further detailed information about the background to ICFE can be found in the ICFE Handbook for Teachers pp 1-6. The Handbook is also available online at the ICFE website: www.financialenglish.org

NB: These guidelines have been written by an independent consultant to help tuition providers to prepare courses for candidates who are preparing for ICFE. Nothing in this document constitutes official advice or instruction on behalf of University of Cambridge ESOL Examinations or ACCA. This document is provided for information only and neither University of Cambridge ESOL Examinations nor ACCA can be held liable for any consequences arising from its use. © UCLES 2008

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ICFE Guidelines How to design a teaching course for ICFE Examination Preparation 1.

CONTENT

ICFE tests language skills in the context of international finance and accounting. It does not assess candidates’ knowledge of this subject area but their language skills in the context of finance and accountancy. These Guidelines make the following assumptions where preparing for ICFE is concerned: Learners: i) Many learners will be studying finance and accounting so the topics will be familiar to them. They may not yet, however, have the language skills to work effectively in this field and this is what the preparation course must focus on for them. ii)

Some learners may be unfamiliar with some finance and accounting topics and will need support in learning more about them as well as developing their language knowledge and skills in this subject area.

Teachers: i) Teachers experienced in teaching English for finance and accounting will need support in ICFE-specific skills. ii)

There may be numbers of language teachers approaching this professional area for the first time. They will need additional support in finding out about the topic areas and specialist terminology.

There is, therefore, no one model that fits all. It will be necessary to select from and develop further the materials and course ideas in these Guidelines to suit individual situations.

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ICFE Guidelines How to design a teaching course for ICFE Examination Preparation

CONTENT (cont) 1.1 Subject Content A list of the main topic areas in ICFE can be found on page 4 of the ICFE Handbook. In Appendix A there is a check-list which is not exhaustive but which gives an overview of the main areas within each topic which it is useful to cover in an ICFE preparation course. The topics have been grouped in terms of how easily they might be dealt with in a preparation course. Each ICFE examination tests any number of these topics and no reference is made to any grouping of topics under headings such as those in these Guidelines. 1.2

Language content

1.2.1 Language level On completion of the exam, successful candidates are awarded either a B2 or C1 grade. ICFE candidates need to reach a language level of at least B2 (upper intermediate) to be successful in ICFE. For a summary of what successful ICFE candidates can do at levels B2 and C1, please refer to the Can Do statements in Appendix B, page 29. Starting level: the suggestions for course work in these Guidelines assume a minimum starting language level of good intermediate i.e. the start of level B2. This is equivalent to the start of a general English course leading to the Cambridge First Certificate in English examination. 1.2.2 Language syllabus There is no ICFE paper testing grammar or knowledge of the language systems in English but candidates need a sound grasp of the basic verb tenses including passives and conditionals, modals, quantifiers and determiners (e.g. each, every, some, none, several) and linking words. Vocabulary: in addition to finance/accounting-specific vocabulary and terminology, candidates will need a good knowledge of work-related vocabulary. Collocations are very important and are tested across the 4 ICFE papers. 1.3 Language skills Whenever possible, it will be useful to practise the key skill of paraphrasing to ensure that candidates can describe and explain ideas clearly as well as being able to understand paraphrase in texts and when used by others in speaking situations. ICFE tests receptive skills (reading and listening) and productive skills (writing and speaking) in the context of international finance and accounting. The following outlines the skills tested in ICFE.

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ICFE Guidelines How to design a teaching course for ICFE Examination Preparation

1.3.1 Receptive skills Learners need to develop skills in purposeful reading i.e. knowing the purpose of reading a text before reading it and employing relevant reading skills. This reflects what readers do in the real world; it is also important in ICFE since the timing of the Reading Test does not allow for detailed reading of all the texts in full. Reading (Paper 1) • • • • •

Detailed reading and understanding: precision of use of vocabulary, collocations, fixed phrases, phrasal verbs, linking words and shades of meaning. (Focus on vocabulary and linking words). Detailed reading and understanding: awareness and control of structural items such as conjunctions, prepositions, auxiliaries etc (Focus on structure).

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Detailed reading and understanding: supplying an appropriate word formed from a given base word e.g. dependent → independence. (Focus on vocabulary)

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Reading for general meaning and scanning to locate specific information.

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Reading for general meaning and detail: how texts are structured, following meaning and argument in texts.

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Intensive reading: understanding the detailed meaning of a text including opinions, implication and referencing.

Listening (Paper 3) •

Listening for gist, detail, function, purpose, topic, attitude, feelings and opinions. (Focus on short monologues or dialogues / interacting speakers).

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Listening to identify gist in a number of texts on a theme and identifying speakers, topics, functions and opinions.

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Listening for development of main points in a text and retrieving specific information. (Focus on sentence completion)

These skills need to be developed by listening to examples of formal and informal situations e.g. a lecture (formal) or two accountants chatting about an aspect of their current workload (informal). Candidates also need to be familiar with varieties of English (UK, North American, Australian etc).

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ICFE Guidelines How to design a teaching course for ICFE Examination Preparation

1.3.2

Productive skills

Writing (Paper 2) • Writing a concise and clear formal letter based on input text and covering five specific content points: explaining, refuting, presenting and developing arguments, suggesting etc 120-180 words •

Writing a clear and well-structured report developing four specific content points: presenting and developing arguments, expressing and supporting opinions, evaluating ideas, describing, recommending, persuading etc 200-250 words

Speaking (Paper 4) •

Responding to questions about studies / work experience in finance and accounting.

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Sustaining a ‘long turn’: preparing and then giving information, expressing and justifying opinions.

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Taking part in a two-way conversation (with the second candidate) to work on a collaborative task: turn-taking, negotiating, exchanging information, justifying opinions, agreeing/disagreeing etc.

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Taking part in a discussion: responding appropriately to questions, developing the topic, expressing and justifying opinions etc.

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ICFE Guidelines How to design a teaching course for ICFE Examination Preparation

2.

MATERIALS

2.1 Subject-based Materials This section is about authentic materials on finance/accounting-related topics and issues. These materials are not designed for teaching English language purposes so the language is ungraded (though always clear). Use of these materials brings variety to the classroom but they must be selected and used judiciously, particularly with reference to level and length. 2.1.1

Specialist text-books

The Meaning of Company Accounts - Reid & Myddleton, Gower Publishing (2005) Management and Cost Accounting - C Drury, Thomson Learning (2004) Fundamentals of Corporate Finance – Brearley and Myers, McGaw-Hill (2003) Useful for:

2.1.2

Technical explanations of finance and accounting suitable for ICFE candidates already working in the field or studying at undergraduate/ MBA level. Text-books for non-specialists

Accountancy for non-accounting students – J R Dyson, FT/Prentice Hall (2007) Accounting for Non-Accountants – G Mott, Kogan Page (2006) Management Accounting for Non Specialists – C Gowthorpe, Thomson Learning (2005) Useful for:

Clear and non-technical introductions to basic principles of financial and management accounting for students (and teachers) relatively inexperienced in the topic area. Good practical examples to illustrate concepts and clear language of explanation. Speaking skills: when preparing to discuss a topic, these texts serve students as a useful reference point for collecting main points on a topic e.g. investment appraisal methods (summarised in Accounting for NonAccountants pp. 210-219). Relevant for Speaking Test Part 4. Writing skills: useful as source for collecting content for writing a report. Relevant for Writing Test Part 2. Also good practice in reading for main points and note-taking.

2.1.3 Finance/accounting-related websites There are thousands of websites with content related to finance and accounting. The following attempts to categorise and evaluate different types of websites in terms of their usefulness for an ICFE preparation course.

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ICFE Guidelines How to design a teaching course for ICFE Examination Preparation

Job sites Large accountancy firm websites have sections relating to employment in their particular firms. Websites for graduates and professionals looking for employment also contain job descriptions in the finance/accountancy sectors. For example: www.prospects.ac.uk www.jobprofiles.monster.com Useful for:

Concise and relatively simple descriptions of job responsibilities, skills and qualifications required. www.Jobprofiles.monster.com contains profiles for accountant, auditor, budget analyst, controller and financial analyst. Useful for understanding different roles in the sector. Speaking skills: preparing to answer questions about studies, work experience, career ambitions etc. Relevant for Speaking Test Part 1. Listening skills: acquiring this vocabulary / terminology helps in understanding conversation / discussion between accountants describing aspects of their work, training courses needed or attended, new applicants for posts etc. Relevant for Listening Test Parts 1 & 4.

Professional accountancy bodies www.accaglobal.com ACCA’S website is a rich source of information about the profession and practical advice about taking examinations as well as being a good source of different types of text. For example: The Public Interest section (Technical Areas) lists the technical areas of the profession ACCA is involved in with articles on, among others, insolvency issues, corporate governance, money laundering, sustainability issues etc. Useful for:

Factual texts with introductory paragraphs which can be gapped. e.g. Money Laundering Regulations 2007 First section (c. 400 words) contains a range of linking words and expressions (now, but, in particular, accordingly, either, neither, however, as well as) and reference words (this, these, such). Reading skills: text can be gapped with the missing words listed under the text. Useful for understanding cohesion and coherence of texts and working on examination technique (gapped text). Relevant for Reading Test Parts 2, 5 & 6. Writing skills: awareness of how linking and referencing words function is relevant for Writing Test Parts 1 & 2.

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ICFE Guidelines How to design a teaching course for ICFE Examination Preparation

The Students & affiliates section (Publications) has an archive of articles on different aspects of the profession. Useful for:

Longer texts with a focus on opinion and attitudes of the writers. e.g. The Future of the Accountant by Sarah Perrin Reading skills: each paragraph has a different opinion and can be used for skimming and scanning practice. Relevant for Reading Test Part 4. Speaking skills: useful for oral practice (agreeing / disagreeing).

Other professional accountancy and regulator bodies sites include: www.icaew.co.uk www.cima.co.uk www.iia.co.uk www.aicpa.org www.iasb.org www.frc.org.uk

Institute of Chartered Accountants in England and Wales Chartered Institute of Management Accountants Institute of Internal Auditors Association of Certified Public Accountants (USA) International Accounting Standards Board Financial Reporting Council

2.1.4 Journals Many finance and accountancy journals are available online. www.accaglobal.com Archived issues of ACCA student and member magazines - student accountant and accounting & business are available for public access. Useful for:

accounting & business addresses critical issues in international accountancy and business and contains the latest in news analysis and features. Student accountant includes technical articles, career development and business features.

www.accountancyage.com In addition to a wide range of texts, this site has a section with free web broadcasts. Useful for:

Extended discussion and interaction, current issues. Some editing needed as broadcasts are up to one hour in length. Students could watch remaining parts as follow-up work on their own. e.g. The Concept of Corporate Risk, How to Measure the Value of IT. Listening skills: listening for gist, main points, details, opinion, attitude. Useful language input for agreeing/disagreeing, clarifying, justifying etc.

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ICFE Guidelines How to design a teaching course for ICFE Examination Preparation The site also has outlines of web seminars available. The websites of large accountancy firms (PricewaterhouseCoopers, Ernst & Young, KPMG, Deloitte etc) are also good sources of course information.

Useful for:

Course outlines highlight issues related to different topics (tax, auditing, insurance, venture capital, company valuations etc. Writing skills: good input for report writing on seminars attended. Relevant for Writing Test Part 2. Speaking skills: useful material for collaborative task, discussing training needed for your firm, deciding which course to take / organise. Relevant for Speaking Test Part 3.

Other similar websites include: www.financialdirector.co.uk www.aicoa.org Journal of Accountancy (USA) www.accountancymag.co.uk www.accountantsworld.com Some other publications may have relevant texts in their business pages: www.ft.com Financial Times www.economist.com www.managementtoday.co.uk www.businessweek.com However, it is important to focus closely on finance and accounting issues rather than broader business issues.

2.1.5 Podcasts There are a number of sources for free finance/accountancy- related podcasts on the internet. Some podcasts are a convenient length for use in class (under 5 minutes) but many need to be used only in part. www.cpapodcasts.com A series of 50 podcasts on Accounting Best Practices, consisting of interviews. Some of the speakers are Americans, some of the interviews are conducted with people over the telephone. Large accountancy firm websites also have podcasts, for example: www.deloitte.com A range of topics from around the world including speakers from Australia, South Africa, Canada and the USA.

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ICFE Guidelines How to design a teaching course for ICFE Examination Preparation www.ey.com Ernst and Young have a directory of podcasts on their website which can be accessed by date of release or, more usefully, by topic e.g. Accounting Technical, Business Risk, International Tax etc. Some are quite technical with reference to figures and trends. www.apple.com/itunes/store The iTunes store has a range of podcasts from BBC radio programmes, many of which include business topics. Most useful for ICFE preparation are the following: London Business School podcasts Interviews with LBS staff on, for example, the rise of shareholder activism, prediction markets, LBS finance programmes and their content etc. Some of the speakers are non-native speakers of English. McKinsey on Finance podcasts Mostly monologues on a range of financial topics, for example Is the M & A boom over? Speakers have UK and USA accents. UBS Economics podcasts A range of finance topics including reference to figures and trends, for example, New Forecasts for 2008. Useful for:

An alternative way of introducing a topic or new lexical items (rather than using text). Useful for developing a range of listening skills and notetaking skills. Listening skills: listening for gist, main points, detailed information, attitude and opinion. Understanding agreement/disagreement, understanding facts & figures. Listening to interviews, monologues, telephone interviews. Relevant for all 4 parts of the Listening Test.

2.1.6 Company reports Company reports can be accessed online via an individual company’s website or via a site such as: www.carol.co.uk Registration is free and gives access to the annual reports of listed companies in Europe and USA. The site also has an easily accessed page of the FTSE 100 share prices, updated every minute. Useful for:

Support material when teaching basic accounting terms (balance sheet, P & L etc), financial concepts (going concern, etc) and ways of measuring company performance (ratios etc). Useful for teaching how to refer to numbers and describe trends. Useful illustration material for report writing and discussion of company performance.

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ICFE Guidelines How to design a teaching course for ICFE Examination Preparation

2.2

Language materials 2.2.1

Finance/accounting-related language text-books

Professional English in Use – Finance I MacKenzie CUP (2007) Useful for:

Suitable as a core text as it covers a number of basic ICFE topics under headings of Accounting, Banking, Corporate Finance, Economics and Trade. Emphasis is on learning vocabulary. New vocabulary is introduced and there are exercises to practise the items learnt. The exercises include gap-fill, matching exercises and word formation (all relevant for Reading Test) as well as sentence completion, word combinations, completing tables and true/false questions. This book does not develop listening, writing or speaking skills.

Financial English – I MacKenzie, Thomson Heinle (1995) Useful for:

Further language practice in accounting/finance vocabulary and terminology. Also contains a mini-dictionary of finance terms.

Other books to consider: Market Leader: Banking and Finance – C Johnston, Pearson Longman (2000) Market Leader: Business Grammar and Usage – P Strutt, Pearson Longman (2000) Banking English - J Pratten, Delta Publishing (1998) English for the Financial Sector – I MacKenzie, CUP to be published May 08

2.2.2 English language teaching websites Websites with teaching resources relevant to finance and accounting include: www.teachingenglish.org.uk British Council A wide range of resources including articles for teachers on classroom ideas (e.g. webquests, using authentic materials, using the internet) as well as teaching ideas and lesson plans. Useful pronunciation activities with audio files. www.glencoe.com MacGraw Hill publishers In the section on Accounting / Advanced Accounting there is a set of 25 quite concise case studies on different topics together with study guides e.g. depreciation, cash flow etc. www.businessenglishonline.net Macmillan publishers Sets of worksheets on business topics. The Business Dilemma section has a case study with audio file on takeovers with multiple choice questions.

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ICFE Guidelines How to design a teaching course for ICFE Examination Preparation www.onestopenglish.com A wide range of support material including an ESP Bank with sections on Banking and Finance and a Skills section with worksheets (and audio files for pronunciation exercises) for the classroom. www.financialenglish.org The ICFE website has a link to the Cambridge ESOL website Teaching Resource section with classroom activities and skills development ideas. 2.2.3 English language materials Grammar reference / practice It is useful for students to have a grammar reference / practice book to supplement their ICFE preparation. Additional homework exercises can be given and individual students’ weaknesses targeted. Books to consider: English Grammar in Use – R Murphy, CUP (2004) Practical English Usage – M Swan, OUP (2005) Skills development There are skills books available from all the major ELT publishers. Most are businessrelated rather than specifically finance/accountancy but they provide useful language practice in work situations. A small selection from the wide range on offer: Business Reports in English English for International Negotiations Essential Telephoning in English Business Opportunities Reward Business Resource Packs Negotiating / Meetings / Writing Skills

Cambridge University Press CUP CUP Oxford University Press Macmillan Suummertown

www.Owl.english.purdue.edu (USA) Online Writing Lab 2.2.4 Dictionaries A Dictionary of Accounting A & C Black Publishers (2007) Penguin Dictionary of Accounting Penguin (2006) A Dictionary of Accounting OUP (2005) CIMA Dictionary of Finance and Accounting Bloomsbury (2003) Penguin International Dictionary of Finance Penguin (2003) Online learner dictionaries Cambridge University Press Oxford University Press

www.dictionary.cambridge.org www.oup.com/elt/catalogue/oald

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ICFE Guidelines How to design a teaching course for ICFE Examination Preparation 3.

COURSE DESIGN

3.1 Hours These Guidelines contain ideas for a course of approximately 45 hours. It could be delivered in extensive mode (15 weeks x 3 or 30 weeks x 1.5 etc) or as an intensive module. 3.2

Course Structure

At the end of an ICFE Preparation course, the learners should be able to: • • • • • •

understand and use financial/accounting concepts and terminology in English use a range of reading skills to understand different types of texts on finance/ accounting topics write clear, well-structured letters and reports in a range of financial/accounting contexts understand conversations, discussions, interviews etc on finance/accounting topics participate effectively in discussions on financial/accounting topics and issues related to working in this field perform well in examination tasks specific to ICFE, and have a good grasp of appropriate examination techniques.

Each session includes: • • • •

work on financial/accounting concepts and terminology i.e. introducing new language in context, working with texts or listening material; language skills development i.e. practising the use of new and familiar language in reading texts, written tasks and speaking situations; examination focus : working on an examination-specific skill or task; some suggested follow-up work.

Each numbered session contains approximately 3 hours’ work. The outline is intended as an indication – not a fixed programme - of how ICFE topics might be covered and how authentic and teaching materials might be combined to cover the skills required in the examination.

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ICFE Guidelines How to design a teaching course for ICFE Examination Preparation 3.3

Sample Lesson Plan

Timetable Aims

To practise talking about job/studies and ambitions To develop reading skills (scanning) To practise listening for main points and note-taking

Materials

Unit 3 Professional English in Use – Finance I MacKenzie 3 x course descriptions ESOL web activity worksheet etc LBS podcast

Timing 5 mins

Procedure / Material(s) Outline aims of session. List stages on board. Explain how links to exam.

15 mins

Elicit from class information about their jobs/studies Write job titles (accountant/finance manager/auditor) on board & elicit job responsibilities. Check understanding of basic terms Unit 3 (Accounting/Auditing)

10 mins

5 mins

Students ask each other about: • what they enjoy about their work/studies • ways of qualifying as accountants in their countries • laws relating to accounting in their countries Feedback

15 mins

Students read Unit 3 p. 12

Teacher → whole class Individual

Matching exercise 3.1 in pairs Check answers Matching exercise 3.2

Pairwork Teacher → whole class

How important is further training for accountants? Ambitions: what do you hope to do in the future / in 5 years’ time etc? Revise use of 1st / 2nd conditionals + future tenses

Small groups

20 mins

10 mins

Give out course descriptions to each group. Group discusses advantages/disadvantages/usefulness etc and then ranks 3 in order of usefulness. Feedback Scanning exercise: which course lasts one day? etc

Interaction Teacher → whole class

Pairwork

Teacher → whole class

Break

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ICFE Guidelines How to design a teaching course for ICFE Examination Preparation Timetable (cont) 20 mins

Listening skills: elicit what accountants have to listen to (meetings, lectures, presentations etc)

Teacher → whole class

Why is prediction important? ESOL web activity: Focus on Predicting Students check answers in pairs Give correct answers. Did predicting help? Useful in reading?

30 mins

Qualifications: London Business School Master’s in Finance (MiF) and who is it for? Prediction task: what will Dean say about the course and its participants?

Pairwork

Small groups

iTunes podcast Finance Courses Students take notes. 00.00-02.35 why was course developed, how many students 02.35-04.50 benefits of course to students (3) focus on comparative language 04.50-05.50 who is typical student 05.50-06.50 what kind of feedback (3 examples) 06.50 -07.50 what to consider before deciding whether to take course Feedback and answers. Did prediction help? 10 mins

10 mins

Discussion: would you choose this course? Working and studying or taking time out to study – which is best? Setting homework Long texts: how to read them, dealing with unknown words, using highlighter/underlining etc. Hand out ‘The Future of the Accountant’ (ACCA website): ask students to list main opinions and decide if they agree or not. Feedback in next session.

Teacher → whole class Small groups Teacher → whole class

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ICFE Guidelines How to design a teaching course for ICFE Examination Preparation This is a blank timetable you might like to use for lesson planning:

Aims

Materials

Timing

Procedure / Material(s)

Interaction

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ICFE Guidelines How to design a teaching course for ICFE Examination Preparation POSSIBLE EXTENSIONS to workshop: 1. 2. 3.

Take another topic area and groups draw up session components Give out another unit of the course programme and groups draw up lesson plans Focus on writing tasks (since level and assessment will be of interest) with letter and/or report and sample answers from Handbook. Work on improving a weak answer / explaining what assessment criteria are in play etc.

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ICFE Guidelines How to design a teaching course for ICFE Examination Preparation 4. 4.1

EXAMINATION PREPARATION TIPS General

The most important advice of all: be prepared! Candidates should: • know the format of ICFE (how many papers, how much time) • be familiar with the task types in ICFE • understand the marking system (e.g. more marks for Writing Part 2 means allow more time to spend working on Part 2) • read every question carefully If candidates are unfamiliar with the practical aspects of the examination, they are likely to be distracted and not use the time profitably. There is a set of DOs and DON’Ts on the ICFE Teaching Resource website. Here are a few more hints: 4.2 •

Reading Think about the time. You might prefer to work on the longer texts first but be careful to leave time for Parts 1-3

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In Parts 1 -3 read the text through first for general meaning. You may get a few of the answers as you read and that is a good start

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In Parts 1-3 read carefully around the gap – what comes before and after can impact on the word required e.g. whether it is negative or past tense

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In Part 4 use the technique that works well for you – some prefer to read each question and then scan the text, some prefer to read the first text and scan the questions

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In Part 5 read the text carefully paragraph by paragraph. Check the construction of sentences, especially words like ‘however’ (which impacts on meaning) and ‘such’ (which refers back to something)

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Cross out each sentence as you select it but remember you may have to reconsider an answer and change it

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In Part 6 read the text systematically - the answers to the questions appear chronologically in the text

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In Part 6 read the stem of the question and look for the answer in the text - when you find a possible answer, see if it matches any of the options (A, B, C or D)

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If you have any gaps at the end, guess as there are no marks deducted for incorrect answers.

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ICFE Guidelines How to design a teaching course for ICFE Examination Preparation 4.3

Writing

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Allocate time carefully - Part 1 has 40% of the marks and Part 2 60% so you need to spend more time planning and writing the Part 2 task

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In Part 1 check the 5 content points and highlight or underline the functional verb or expression (e.g. explain or give details) - as you write, remember to check that you have addressed the function – is there an explanation in your answer?

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Be sure of the correct ways to begin and end formal letters

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In Part 2 check the 4 content points – make a plan of what you will include in each point and remember, they do not have to be developed equally but each must be addressed

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When you have finished, read through your work and check it carefully especially for spelling and singular/plural agreements – also check that any long sentences are punctuated correctly to help the reader follow your answer.

4.4 Listening •

Remember you will hear everything twice so don’t worry if you do not get the answer first time - move to the next question and use the second listening to find the missing answer

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In Part 3 there is time to write your answers while you listen – remember to read the sentence through after you have written your answer to make sure it is grammatically correct and that you have not included any words in your answer that are already on the page

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In Part 4 there are two questions for each speaker

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Copy your answers carefully onto the answer sheet at the end and make sure that you have kept the correct numbering

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If you have any gaps at the end, guess as there are no marks deducted for incorrect answers.

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ICFE Guidelines How to design a teaching course for ICFE Examination Preparation 4.5 Speaking •

Be ready to speak – but be sensitive to your partner when you are working together

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In Part 1 make sure you are ready to describe your work or studies clearly – add some information but don’t produce a long rehearsed answer

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In Part 2 indicate how you have planned your talk – say how many points you are going to make and refer to them during your talk

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In Part 3 involve your partner but don’t ask him/her questions all the time – say what you think first and then let your partner speak – be sure to take turns

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In Part 4 develop your answers with examples, if possible – using examples gives you the opportunity to describe or explain something

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It is important to look interested – it gives you and your partner confidence

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ICFE Guidelines How to design a teaching course for ICFE Examination Preparation Appendix A Topics in international finance and accounting. The topics have been grouped in terms of how easily they might be dealt with in a preparation course. This grouping has no significance in terms of the content of ICFE examination papers. The list is not exhaustive. Financial Accounting Financial Reporting

Functions of key financial statements: • Income statement • Financial position statement Relationship with cash flow statement Value added statement (sales less all bought-in goods & services) and how it is distributed (to employees, government, shareholders, loan providers, reinvested) Difference between long-term assets (tangible, intangible, investments) & current assets (inventories, receivables, cash / bank balances); goodwill and the financial position statement How depreciation of assets works Categories of payables (e.g. suppliers, borrowed capital, tax not yet due, dividends awaiting payment date etc) Reasons for leasing vs hire purchase Profit: understanding role of financial ratios (return on equity, return on capital employed, gross/net profit margin) Understanding the role of efficiency ratios (e.g. turnover of capital, inventories turnover etc) Examining a company’s short-term liquidity (quick ratio, current ratio) and long-term solvency (debt ratio) Measuring a company’s performance: benchmarking (internal, external, best practice) Users of accounting information and decisions they take: e.g. customers, shareholders, management, suppliers, lenders, employees etc

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ICFE Guidelines How to design a teaching course for ICFE Examination Preparation Cost and Management Accounting Cost and management accounting

Financial information allowing management to plan, control, price, measure performance, make decisions: e.g. cost data, product costs, budgeted costs Difference between direct/indirect costs (overheads); between fixed/ variable costs Importance of knowing total cost of a product / service (for inventory valuation, pricing, to calculate profit at given selling price, cost control) Ways of costing products / services including marginal costing and standard costing Ways of charging overheads to different product lines Activity-based costing: analysis of overhead costs into activities (e.g. materials handling, invoicing etc) to identify overhead costs with products that incur them Break-even analysis and its limitations Understanding product profitability: • profit margins: key accounting ratios (return on capital, profit margin, turnover of capital); why profit margins vary, how companies set their targets • contribution analysis (sales less variable costs) and how products contribute towards fixed costs Pricing: financial factors and strategies involved in the pricing process Advantages and disadvantages of outsourcing

Budgetary processes

Main purpose of budgetary control: short-term financial plans to meet objectives in coming accounting year, compatible with longer term aims Difference between revenue budgeting (forecasts of sales revenue & operating costs) and capital budgeting (plans for capital expenditure on projects or assets) For capital budgeting see under Financial Management below Budget preparation: who is involved, different budgets • • • •

Sales budget (customers, markets, sales area, months) Production budget (products, when, which departments, cost of labour & materials) Departmental overhead budgets Cash budget & budgeted cash flow statement

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ICFE Guidelines How to design a teaching course for ICFE Examination Preparation Increasing role of forecasting in budget preparation Budget reports: comparing actual results with budget Financial responsibility centres: investment centre, profit centre, cost centre Flexible budgets: purpose and use

Financial Management Company financial strategy

Companies as wealth creators (definition of value added) Raising & deployment of finance Cost of capital and role of risk Investment proposals: reasons (expansion, new product, diversification, cost saving, replacing machinery, purchasing vs leasing, comparing similar investments etc) Investment appraisal (comparing benefits with costs) Advantages & disadvantages of different methods: payback, accounting/true rate of return, net present value, internal rate of return Role of taxation (payments & savings) and inflation in investment appraisal Managing working capital, finding balance between liquidity & profitability Managing cash: • cash budget • budgeted cash flow statement Managing payables Managing inventories (physical inventories / salaries & overheads = work-in-progress)

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ICFE Guidelines How to design a teaching course for ICFE Examination Preparation

Debt recovery & Credit Policy

Checking creditworthiness of customers; trade indemnity insurance against bad debts Terms of sale: length of credit period, any cash discounts for early payment etc Dealing with late payers: reminders, warnings, stopping supplies, legal action Advantages of factoring & invoice discounting arrangements

Raising capital

Sources of new capital for new investments: • new borrowings • retained profit • share issues Cost of borrowed capital & cost of equity capital Capital gearing (relationship between borrowed capital and owners’ capital) Advantages & disadvantages of loans vs overdrafts

Investment banking

The role of investment banks as: • intermediaries between companies & investors, helping companies to raise capital • representing companies in mergers & acquisitions Other services (consulting, research etc) Venture capital companies: specialists in finding venture capital (funds for new enterprises)

Risk assessment & analysis

Specific risk (applies to particular business) Systematic risk (effect of global or macro-economic events) Ways of reducing risk in investment appraisal

Bankruptcy and insolvency

Examining a company’s short-term liquidity (quick ratio, current ratio) and long-term solvency (debt ratio) (see under Financial Reporting above) Ways of restructuring debt Winding up an insolvent business

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ICFE Guidelines How to design a teaching course for ICFE Examination Preparation

The Stock Market

Barometer of business confidence & source of investors for companies Factors affecting share prices include: • economic indicators • changes in government, international events • announcement re profits, dividends • changes in management • industry-specfic issues • new share issues Reasons why companies go public Company dividend policy & role of shareholders

Mergers and acquisitions

Difference between a merger / a take-over or acquisition / a management buy-out / a management buy-in Reasons for mergers and takeovers Hostile / friendly takeovers Types of integration and their purpose: vertical / horizontal / lateral

Assets and company valuations

Valuing a business: • value of assets (role of goodwill) • earnings per share • stock market value (if public company)

Foreign exchange & currency

International trade: the role of exchange rates in overseas transactions and their effect on bookkeeping procedures Why exchange rates change Other risks associated with exchange rates and ways of minimising risk (forward buying of foreign currency, forward contracts etc)

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ICFE Guidelines How to design a teaching course for ICFE Examination Preparation Further accounting and finance-related areas Auditing

Function of the audit report Possible areas of qualification (e.g. keeping inadequate records, overvaluation of stock etc) and their impact on company concerned Differences in roles of external auditors and internal auditors

Accounting Software packages

Key role of software in complex transactions: • handling cost data / cost coding • budget preparation and financial modelling • investment appraisal

Banking

What makes a good accounting software package Banking products and services

Insurance

Roles of other types of financial institutions (investment banks, private banks, building societies, central banks etc) Types of insurance companies and their business: • • •

general insurance life insurance reinsurance

Types of insurance needed by businesses (e.g. professional liability, employer liability, property etc) Other services insurance companies offer including investment and risk analysis, financial advice etc Taxation

(Non jurisdiction specific in ICFE) Positive & negative aspects of company taxation Role of capital allowances

Economic conditions and forecasts

Maximising gain from taxes and allowances Economic conditions affecting business performance (employment, inflation, interest rates, money supply etc) Forecasts which impact on business strategic planning including GDP, growth (general economy & specific industries), earnings, productivity, retail sales, level of consumer borrowing etc

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ICFE Guidelines How to design a teaching course for ICFE Examination Preparation Environmental and sustainability issues

Climate change / energy issues / transportation / waste disposal / new technologies / resources / pollution etc. How such issues impact on business decisions – what financial benefits can green policies bring companies?

Ethics and The company in society: corporate social responsibility, relations Professionalism with shareholders, political activity etc Identifying irregular accounting procedures: misleading financial information, creative accounting, insider trading, bribery, fraud etc. Ref Enron, WorldCom Corporate governance

Regulation and supervision of companies to ensure accountability of individuals Principles include fair treatment of shareholders, a responsible Board, disclosure and transparency, ethical behaviour The role of corporate governance in detecting / preventing fraud Internal controls within businesses, independence of auditors, avoidance of conflicts of interest

Forensic accounting

Sarbanes-Oxley 2002 The role of a forensic accountant and areas in which they are involved (e.g. recovering proceeds of crime, money laundering, insurance claims, bankruptcy, fraud etc) The skills needed by forensic accountants

Professional practice

Accountancy as a career; career planning, career development and continued training How accountancy firms are structured and operate; dealing with clients Careers in related fields (insurance, banking, taxation, fund management, business analyst etc)

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ICFE Guidelines How to design a teaching course for ICFE Examination Preparation Appendix B Can Do Summary levels C1 Listening and Speaking Can follow discussion with only occasional need for clarification Can deal with unpredictable questions

Can argue their case effectively and specify needs precisely Can engage in an extended conversation with colleagues and clients on matters within their authority/competence

Reading and Writing Can understand the general meaning of more complex reports Can, within a reasonably short time, understand most reports that they are likely to come across Can, given enough time, write a report that communicates the desired message Can write most correspondence he / she is likely to be required to do

Can Do Summary levels B2 Listening and Speaking Can ask for factual information and understand the answer Can ask questions, for example for clarification, while following a lecture, talk or presentation Can express own opinion, and present arguments to a limited extent Can give a simple, prepared presentation on a familiar topic

Reading and Writing Can understand the general meaning of non-routine correspondence Can understand the general meaning of a report even if the topic is not predictable Can write a simple report of a factual nature and begin to evaluate, advise, etc. Can write non-routine correspondence where this is restricted to matters of fact

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ICFE Guidelines How to design a teaching course for ICFE Examination Preparation Appendix C Ideas for an ICE Preparation Course * Professional English in Use – Finance I MacKenzie, CUP

1

ICFE topic(s) Accountancy as a profession

Language I’m a … responsible for .. After –ing .. I ….

Roles in profession Qualifications Study and training opportunities Differences internationally

In the past I used to .. but now .. In the future I’d like to .. hope to .. have plans to .. Language of comparison: .. not as good / challenging as .. better than .. .. etc

Skills Speaking: answering questions & talking about job / professional studies including training opportunities Reading: matching exercises in * Unit 3. Reading: skimming & scanning Reading: longer text for main points and opinions Listening: for main points ESOL web Listening Activity Focus on Predicting

* Unit 3 Descriptions of courses & seminars (internet – accountancy firms) Follow-up work:

2

LBS podcast re finance courses

Reading text about future of profession (internet) Source a balance sheet for session 2

ICFE topic(s) Financial Reporting: basic terms

Language Comparing (UK & USA)

Skills Reading: word combinations and word formations (suffix, prefix etc)

Balance sheet/Financial position statement Assets

Key vocabulary & terms

How to record vocabulary effectively

Expressing opinion

Speaking: expressing opinion, agreeing / disagreeing, explaining

What are company’s most valuable assets?

Agreeing and disagreeing

Future of profession (text from session 1); jobs of the future * Units 11 + 12 Balance sheets from UK / USA companies

Speaking: giving information

ESOL web Reading Activity Financial Word Building ESOL web Speaking Activity Formal Job Interview

Follow-up work: * Unit 13 Liabilities ICFE Sample Reading paper Part 1B (use key to check)

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ICFE Guidelines How to design a teaching course for ICFE Examination Preparation

3

ICFE topic(s) Financial Reporting: basic terms & concepts

Language Key vocabulary & terms Describing and assessing

P&L Role of cash in business Reasons for company failures

Summarising Language for turntaking / initiating / asking for opinion / agreeing & disagreeing

Skills Reading: handling gapped texts and reading for main points Speaking & Reading: evaluating & problemsolving. Summarising decisions taken. Speaking & Listening: working with a partner

Formal letter language

Language for being polite, apologising, declining * Unit 14 Short case study on cash flows (Glencoe nr 13) Newspaper article or short report(s) on companies currently in difficulty

Writing: structure of formal letters and formulaic expressions Functions in writing: declining, refusing, apologising Roleplay re company cashflow problems e.g. Decisionmaker (CUP) A Year in Fashion ESOL web Writing Activities Formulaic Expressions Paragraphing a Text

Follow-up work: read article on writing for N American business audience (conciseness, clarity etc) and make notes Draft a letter from bank to owner of fashion business (c. 150 words)

4

ICFE topic(s) Measuring company performance: ratios, liquidity Who uses company financial information Role of shareholders

* Units 15 & 16 + 31 Glencoe Case Studies nr 12 Analysing and interpreting financial statements UBS podcast (New forecasts for 2008) Follow-up work:

Language Language of referring to figures, trends, movements (* Unit 38)

How to organise discourse

Skills Reading: handling matching exercises Listening: understanding detail and sentence completion; understanding figures and trends Speaking: preparing a long turn ESOL web Speaking Activity Discourse Management Skills ICFE Sample Listening Paper Part 3 (Talk to Shareholders) or LBS Podcast (Shareholder activism)

ICFE May 07 Reading Paper Part 3B Shareholders Draft ideas for answering ICFE May 07 Writing paper Part 2

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ICFE Guidelines How to design a teaching course for ICFE Examination Preparation 5

ICFE topic(s) Auditing

Language Key vocabulary and terms

Skills

Role of auditor and purpose of audit report Process of auditing (sampling / evidence)

Language for describing process

Speaking: describing a process

Differences between internal / external auditing

Language for illustrating arguments & opinions

Speaking & listening: working with a partner, Q & A

Accounting software packages: draft answer to May 07 Part 2 * Unit 3

Language for structuring a report; linking words

Writing: how to structure a report; linking and developing ideas IIA website FAQ on internal auditing ICFE Sample Speaking paper part 3 Auditing Plain English website: reports.doc Business Writing Basics on onestopenglish website

Follow-up work: Report on software accounting packages (200-250 words)

6

ICFE topic(s) The role of the Management Accountant Cost & Management Accounting: cost accounting Direct/indirect, fixed/variable costs Overheads Break-even analysis Advantages & disadvantages of outsourcing Unit 17 Onestopenglish ESP Bank Skills (Outsourcing)

Language Key vocabulary and terms

Skills Listening: interpreting context, recognising function (handling matching tasks)

Language for giving advice Language for describing and referring to figures and indicators

Writing: referring to figures & trends; giving business advice

Language of comparing and contrasting ICFE Sample Listening paper Part 4 ICFE Sample Writing paper Part 2 task

Follow-up work: Report on airline expansion (200-250 words)

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ICFE Guidelines How to design a teaching course for ICFE Examination Preparation 7

ICFE topic(s) The budgetary process: who is involved & why Role of forecasting

Skills Reading for detailed understanding (strategies for handling long text + multiple choice questions)

Company financial strategy: expansion

Reading: predicting content from headings (internet text)

Raising capital Role of investment banks & venture capital companies

Listening to identify context and opinions

Draft plan for letter

Language Key vocabulary and terms

Language for explanation Linking expressions and referencing words

* Unit 22 + 28 + 41 Budgeting process chart in Mott p. 184

Writing: explaining Writing: writing a cohesive letter ICFE sample Reading paper Part 6 (Company budgets) ESOL web Reading Activity Why it’s right

Ca.courses-careers.com (careers in investment banking)

ICFE May 07 Writing paper Part 1 task (raising capital) ESOL web Writing Activity Punctuation ICFE May 07 Listening Part 4 (investing in a company)

Practise terms in role play Executive Decisions (Budget Cuts) p.150 Follow-up work: ICFE May O7 Part 1 letter

8

ICFE topic(s) Investment appraisal methods: advantages & disadvantages of methods Risk assessment

Language Key vocabulary and terms

Environmental & sustainability issues: opportunities & threats (draft list in pairs)

Language of comparing & contrasting

Green companies: what does it cost * Unit 20 Wwf.org.uk report ‘To Whose Profit?’ chart on p.3 Independent Business i.6.07 article

Skills

Speaking: comparing & contrasting ideas (with partner); negotiating

Reading: scanning for information; intensive reading to understand text cohesion and coherence ESOL web Reading Activity (vocabulary brainstorm) ICFE May 07 Reading Part 4 (Social responsibility accounting)

Follow-up work: each takes one company, researches how green measures are reported in company accounts and how cost is measured. Prepare short oral report (2 minutes)

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ICFE Guidelines How to design a teaching course for ICFE Examination Preparation 9

ICFE topic(s) Mergers & acquisitions Types of integration Company valuations

Language Key vocabulary and terms

Skills

Language for reporting; modals for speculating, expressing degrees of certainty

Speaking: sustaining a long turn (report back on green companies); revision of discourse markers

Language for agreeing / disagreeing, checking, negotiating

Listening for detailed information and opinion.

* Unit 39 + 40 Macmillan Business Dilemma ‘takeovers’ with audio file & MC questions

McKinsey on Finance podcast (Is the M & A boom over?) ICFE sample Speaking test Part 3 + 4 (Takeover bid)

Follow-up work: report outlining for a client company the opportunities and threats involved with acquisitions (with illustrative example) 200 – 250 words

10

ICFE topic(s) Debt recovery and credit policy: dealing with late payers

Language Key vocabulary and terms

Skills

Reading: grammatical knowledge

Bankruptcy: causes and procedures when companies become insolvent

Listening for detailed information (sentence completion)

Restructuring debt Forensic accounting: definition and comparison of services from accountancy forms * Unit 42 Accountancy firms’ outlines of forensic services from websites

Language for describing services, comparing and contrasting

Speaking: interacting with partner to discuss, evaluate, rank

ICFE May 07 Reading Part 2 (Debt costs rise) ICFE May 07 Listening Part 3 (collapse of chain)

ICFE sample Reading paper Part 5 (Investigative due diligence) Follow-up work: Write a report for a client company in severe financial difficulty explaining the measures that have to be taken to avoid becoming insolvent.

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ICFE Guidelines How to design a teaching course for ICFE Examination Preparation 11

ICFE topic(s) Banking: specialised banks and their functions

Language Key vocabulary and terms

Central banks and the money supply

Skills Listening for opinion and attitude Reading for understanding main ideas

Insurance: types of company; categories of loss and types of coverage needed by businesses * Unit 21 + 23, 25, 27

FT.com podcast (Regulators should intervene in banking)

* Unit 47 Newspaper article about current issues in banking or onestopenglish ESP Bank material on bank products & services Follow-up work: write a report for a new client company explaining what types of insurance is needed and why (with illustrative example) 200 words

12

ICFE topic(s) Taxation: positive & negative aspects of company taxation

Language Key vocabulary and terms

Skills Reading for detailed understanding and knowledge of grammar and cohesion (gapped texts)

Capital allowances Writing: a formal letter explaining, warning, advising

Foreign exchange & currency: role of exchange rates in international trade Why exchange rates change; ways for companies to minimise risk in overseas transactions (draft ideas for letter task) * Unit 49 Accountancyage website News section: select 2 short texts about taxation news. Students gap them in 2 groups and exchange.

Language for discourse management,

Speaking: sustaining long turn (tax services) + answering follow-up questions

Web search: accountancy firms offering tax services

Follow-up work: write a letter to a new client about to start exporting overseas about the role of exchange rates

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ICFE Guidelines How to design a teaching course for ICFE Examination Preparation 13

ICFE topic(s) The business economy

Language Key vocabulary and terms

Inflation: how it is measured and what it is influenced by

Skills Listening for specific information and opinion Writing: making effective notes

Historical cost & inflation accounting Interest rates: their impact on business * Units 7 + 48 + 50 Times online podcast (Marks & Spencer’s 5 point eco plan)

McKinsey on Finance podcast (preparing for the next downturn) ESOL web Writing Activity (Making notes)

Follow-up work: write up notes into a report on the M & S eco plan, its contents, likely cost and cost benefits and your opinion of it. 200 words

14

ICFE topic(s) The Stock market: role in business

Language Language for describing movement of share prices and company reaction

Factors affecting prices of shares Reasons why companies go public

Skills Listening for main points, key words Writing: making effective notes

Revise language for letter writing * Units 29, 30, 32 Select internet site with share prices and compare movements Working Lunch BBC2 (daily update on share movements)

BusinessWeek podcast: (blue chips in triple-digit jump) Set of 12 very short comments on stocks.

Follow-up work: complete language exercises in * Unit 44

37

ICFE Guidelines How to design a teaching course for ICFE Examination Preparation 15

ICFE topic(s) Corporate governance: financial regulation and supervision

Language Key vocabulary and terms

Internal controls within businesses and conflicts of interest

Revise language for report writing

Role of internal auditor in detecting / preventing fraud * Unit 5 Institute of Internal Auditors website FAQ on internal auditing / governance

Skills Reading for specific information

Speaking: asking questions, explaining, asking for clarification ESOL web Reading Activity Reading faster ESOL web Writing Activity (error correction activity) ESOL web Speaking Activity (Language review: language of accounting)

Article(s) about Enron Pronunciation practice needs to be targeted at specific issues of individual nationalities. Useful sites include:

www.onestopenglish.com Skills – Pronunciation (worksheets and audio files) www.teachingenglish.org.uk Audio bank (audio dialogues and stress patterns etc)

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