Financial Management (UK) articles from April 2002

Financial Management (UK) archives from April 2002

Editor's letter.
April 1, 2002... Whenever a company hits the buffers, the first question is always one of responsibility. In Enron's case, the finger of blame is pointing far and wide and one of the Big Five could fall as a consequence. In Railtrack's case, it's fairly clear...

IAS19--employee benefits. (Technical update).
April 1, 2002... The International Accounting Standards Board (IASB) has issued an exposure draft of a limited amendment to IAS19. The purpose of this amendment is to prevent the interaction of the deferred recognition option and the asset ceiling from giving...

IAS1--presentation of financial statements. (Technical update).
April 1, 2002... Entities will be exempted from restating comparative information under IAS1 and IAS8 when the restatement could cause undue cost or effort. The IASB will also require, in the summary of significant accounting policies or in other notes,...

IAS8--net profit or loss for the period, fundamental errors and changes in accounting policies. (Technical update).
April 1, 2002... The IASB agreed to require that when an entity has not adopted a new standard that has not yet come into effect, the entity discloses the nature of the future change or changes in accounting policy; the date at which the entity plans to adopt...

Buyers gain the upper hand in software market: exhibitors at last month's 2002 Softworld Accountancy & Finance show have been finding it hard to win new clients. (Technology).
April 1, 2002... The number of new customers for financial software packages has declined significantly over the past six months, but exhibitors at March's Softworld Accounting & Finance event say they are making up the shortfall by selling more add-on products...

Astute Software. (Exhibition Round-Up).
April 1, 2002... Astute Software unveiled Astute, an integrated financial and supply chain management solution. The package is designed to "deliver process efficiencies and maximise economies of scale".

Albany Software. (Exhibition Round-Up).
April 1, 2002... Albany Software launched ALBACS Remit, an electronic document delivery solution aimed at small and medium-sized businesses. It claims to cut the cost of sending and receiving remittance notes by up to 90 per cent.

Microsoft. (Exhibition Round-Up).
April 1, 2002... Microsoft introduced its customer relationship management tool, aimed at small and medium-sized enterprises, to help them "build more profitable customer relationships through increased sales effectiveness and more consistent customer service"....

Armstrong Laing. (Exhibition Round-Up).
April 1, 2002... Armstrong Laing launched Predictive Planning, a tool that links budgeting data and resource consumption, thus "improving an organisation's business performance".

InGroup. (Exhibition Round-Up).
April 1, 2002... Oracle solution partner InGroup announced Polaris, a web-enabled distribution system capable of gathering financial information from disparate subsidiaries, companies and cost centres.

SquareSum. (Exhibition Round-Up).
April 1, 2002... SquareSum showcased its DREAM corporate accounting software, which is built on Microsoft's latest operating system, Windows XP.

Trustees ill-equipped for task: researchers have uncovered a serious lack of support. (Pensions).
April 1, 2002... UK pension fund trustees are underqualified and their performance is inadequately monitored, a survey by Watson Wyatt and Cranfield School of Management has revealed. Few trustees have an investment qualification or a Pensions Management...

Accounting charity gets on road to Marrakesh. (Pensions).
April 1, 2002... If the idea of quitting the rat race and putting your accounting skills to use in remoter parts of the world appeals to you, but you're not sure whether you could leave the luxury of a reliable internet connection behind, then Mango could have...

APB issues yearly round-up. (Technical update).
April 1, 2002... The Auditing Practices Board (APB) has published its annual review. It summarises the APB's highlights from 2001, including the revision to SAS610. This established new standards relating to communications between auditors and those charged...

No more Enrons, says IFAC. (Technical update).
April 1, 2002... The International Federation of Accountants is calling on members of the profession to help reduce the recurrence of large-scale corporate failures such as Enron. The federation is planning to form an international task force of investors,...

Ministers rapped on exec pay. (Technical update).
April 1, 2002... The Institute of Chartered Secretaries and Administrators (ICSA) has criticised government proposals to put directors' pay to an annual shareholder vote. Such legislation would allow disreputable firms to hide behind the law by claiming...

On-line learning breakthrough. (Technical update).
April 1, 2002... If you've ever been frustrated by the nature of conventional training, then CIMA Intuition is for you. The institute's new e-learning range is designed to provide tailored on-line and CD-Rom resources for finance professionals and their...

Call for self-assessment probe. (Technical update).
April 1, 2002... The Chartered Institute of Taxation (CIOT) is campaigning for an investigation into why so many people failed to complete their tax returns on time this year. Ten per cent of self-assessment taxpayers were unable to file their returns by the 31...

Treasurers get in on the ACT. (Technical update).
April 1, 2002... The Association of Corporate Treasurers (ACT) has published The Treasurer's Handbook 2002. The book includes a treasury policy checklist, a look at treasury policy in countries from Argentina to the US, a ratings, formulas and statistics...

Global firms seal historic pact: the signatories have pledged to be considerate citizens. (Corporate Social Responsibility).
April 1, 2002... Thirty-six multinational companies have signed a statement committing themselves to putting corporate citizenship at the core of their business strategies. The businesses, including mining group Anglo American, fast-food giant McDonald's and...

How to protect yourself when abroad on business. (News Round-Up).
April 1, 2002... The increasing importance of developing markets has led many organisations to send employees into regions of the world that have different values and attitudes from those of the UK. A criminal act in one country may be the normal way of doing...

Flight check. (Letters).
April 1, 2002... I was intrigued to note that, in your February article entitled "Phobia course promises `one day you'll fly ok'", the programme is run by Virgin Atlantic but the picture shows a BA employee. Are Virgin staff so frightened to fly that the course...

Stolen time. (Letters).
April 1, 2002... We must not repeat the mistakes of the past. In the days of high inflation, "current cost accounting" exposed the fact that capital-intensive industries couldn't afford to update their assets and so UK manufacturing wouldn't be able to compete...

Professional interest. (Letters).
April 1, 2002... I read with interest the letters in January's FM replying to my letter in November. I suggested a new global marketing positioning for CIMA and wasn't talking about elitism. If an open-door policy is such a good idea, then why require even...

ERP springs eternal. (Letters).
April 1, 2002... Your article on how to avoid pitfalls when implementing enterprise resource planning ("Rein check", March) highlights a worrying point. As sales and marketing director for an ERP vendor, I work with many financial managers. Their role is...

Shooting stars: spring is bringing renewed optimism for growth in the world's major economies. David Ross analyses the latest research and finds that, while the US is recovering well, Japan is still struggling. (Economics).
April 1, 2002... Many UK readers will recall how chancellor Norman Lamont saw "the green shoots of recovery" in spring 1992, before most of the pundits of the time could detect an upturn. Now, 10 years later, are there signs that the worst is over for the...

Shred or dead? The fall of Enron has shaken public faith in the accountancy profession. David Allen considers what accountants can learn from the affair and asks how far they are responsible for share prices. (Management).
April 1, 2002... Over recent weeks the accountancy profession has attracted much unwelcome publicity following the spectacular collapse of Enron. Some myths have been shattered and weaknesses have been exposed, but what lessons are there for management...

An upturn for the books? A catalogue of crises has done nothing to restore people's faith in the long-term performance of equities, writes Ruth Prickett. But the stock market does have remarkable powers of recovery. (City).
April 1, 2002... Every time investors pick themselves up, dust themselves down and start buying stocks again, something else seems to come along and knock their confidence. The outlook for most economies now seems more optimistic, but will this be reflected in...

Till theft us do part: what do you do if you catch an employee with their hands in the till? Dismiss them instantly? Sue Nickson explains why it's dangerous to ignore procedure even in such clear-cut cases. (Legal).
April 1, 2002... One of the biggest fears for any employer is that a member of staff is stealing from the business. When it comes to light that a senior employee in a position of trust has cooked the books, most employers will see only one possible outcome:...

Any colour as long as it's green: the days when a top-of-the-range company car came with any senior job may be numbered. Cathy Hayward explains the implications of the new tax based on carbon dioxide emissions. (Travel And Entertainment).
April 1, 2002... The writing is on the wall for gas-guzzling, luxury company cars. From this month, tax on the UK's four million company cars will be calculated on the basis of a vehicle's C[O.sub.2] emissions rather than on business mileage, as it has been...

Motivate to accumulate: hanging on to the most talented employees is a critical issue--especially during harder times. Alison Myers offers some tips on unleashing the human potential trapped in your organization. (People Management).
April 1, 2002... As their order books empty and clients become scarcer, companies need their employees to pull their weight more than ever. There are many strategic reasons why motivation theory has risen up the management agenda, not least of which is the...

Lines of inquiry: it's easy to identify the big losers in the Railtrack debacle: the employees, the shareholders and the travelling public. But who is ultimately responsible? David Tyrrall examines the evidence. (Cover Feature Railtrack).
April 1, 2002... On Friday 5 October 2001 the secretary for state for transport, Stephen Byers, met John Robinson, the chairman of Railtrack, to warn him that his company was likely to be put into administration. Both Robinson and Steve Marshall, Railtrack's...

Rail against the machine. (Interview Steve Marshall).
April 1, 2002... Steve Marshall, the former chief executive of Railtrack, is adamant that his company was heading in the right direction before Stephen Byers `forced us into administration by pulling the rug from under us'. In a candid interview with Gemma...

Express purpose: as the new chairman of the Strategic Rail Authority, Richard Bowker certainly has his work cut out. Cathy Hayward finds that he's relishing the challenge of restoring the system. (Profile Richard Bowker).
April 1, 2002... The London HQ of the Strategic Rail Authority may be uncomfortably close to the daily chaos that is Victoria train station, but Richard Bowker, the SRA's new chairman, needs no reminder of the huge task he is facing. Stephen Byers, the...

Buy by wire: on-line systems promise substantial cost savings for business-to-business purchasing, but UK firms have been slow to adopt them so far. Tim Cooper-Jones and Colin Macklin separate the marketing propaganda from the reality and explain how to get started in e-procurement. (How To E-procurement).
April 1, 2002... IN BRIEF GETTING ON FINE ON-LINE A successful start with e-procurement requires five key components: * The project must be set up as a procurement change management initiative, not as an exercise in implementing a new software solution....

Rough guide: earnings before interest, taxation, depreciation and amortisation (EBITDA) is a convenient indicator of a company's financial performance. Stathis Gould explains why this measure, which is becoming increasingly popular with businesses and investors alike, has its flaws and should be treated with care. (Finance Reporting).
April 1, 2002... CIMA members acknowledge that "cash is king" when they judge a company's performance. This was confirmed recently when the institute surveyed a small sample of its membership. Presented with a range of financial performance indicators, from...

Advance and be recognised: the job title `management accountant' has become increasingly unfashionable--one telltale sign that this branch of the profession is in a state of flux. Lee Parker calls on managmenet accountants to leave their back-room support role behind and take on the mantle of strategic business partner, or risk becoming a dying breed. (Management Accounting The Future).
April 1, 2002... The job title `management accountant' has become increasingly unfashionable --one telltale sign that this branch of the profession is in a state of flux. Lee Parker calls on management accountants to leave their back-room support role behind...

The prophet motive: forecasting software is becoming an increasingly attractive tool for organisations concerned about their future in an uncertain economy. Cathy Hayward asks the experts what such systems can--and can't--do. (Technology Forecasting).
April 1, 2002... The effects of the Enron debacle on the accountancy profession have been well documented, but its impact on businesses around the globe has been equally startling. Companies are reviewing the way they operate to see whether a similar fate could...

All systems go: how can you ensure that your business obtains the best price for its technology assets during a takeover of flotation? Paul Bentham offers his guide to getting the most from an IT sell-off. (Technology Sell-Offs).
April 1, 2002... IT systems are the essential tools that allow any sizeable modern company to trade. A business's ability to realise the full value of these technology assets when it is sold or floated depends significantly on how easy they are to transfer....

Is it safe? Practising accountants face risks ranging from non-payment to a loss of professional reputation. But managing these need not be a headache. (Consultants).
April 1, 2002... Making a mistake at work is always a possibility, but usually a consultant's professional indemnity insurance (PII) will cover them if they are sued. While this protection is comforting, it means that many accountants do not make any serious...

Further elections to council 2002. (Institute News).
April 1, 2002... The following have been elected to serve on council from the close of the AGM on 8 June 2002 until the close of the AGM in 2005.

Robin McIntyre Clutterham. (Institute News).
April 1, 2002... Area 1 (Central London and North Thames) Robin Clutterham has been a member of CIMA since qualifying in 1990. He was elected a fellow in 1991. He started his career with an engineering company and moved to a local authority. He joined British...

Keith Barry Lawrence. (Institute News).
April 1, 2002... Area 11 (Central Southern England) Keith Lawrence has a background in business improvement, internal control and corporate governance. With experience in pharmaceuticals (he gained his CIMA qualification at Eli Lilly in 1983) and...

New MBA targets CIMA members. (Institute News).
April 1, 2002... An executive MBA specifically aimed at CIMA members has been launched by Dublin City University Business School (DCU). The new MBA for CIMA, which will start on 1 October 2002, will allow students to combine the best elements of the existing...

Institute diary.
April 1, 2002... CENTRAL LONDON AND NORTH THAMES 10 April How to dress for success in business Speaker: Robert Gieve of Gieves and Hawkes Time: 6.30 for 7pm Venue: RAF Club, 128 Piccadilly, London Branch: Central Government 11 April...

Monarch Airlines. (On the move).
April 1, 2002... Alistair Moffat FCMA has been appointed finance director of Monarch Airlines. In his new role, he will be responsible for all aspects of financial management including treasury, insurance and payroll, and will be in charge of the airline's...

Applix (UK). (On the move).
April 1, 2002... Martin Richmond-Coggan FCMA has been appointed managing director of business planning and CRM solutions company Applix (UK). Richmond-Coggan will be responsible for the strategy and development of Applix's business in the UK and its analytics...

Entertainment UK. (On the move).
April 1, 2002... Graham Barnetson ACMA has been appointed commercial finance controller of Entertainment UK. The company, which is part of the newly demerged Woolworths Group, distributes home entertainment products. Barnetson will be responsible for reporting...

QBE Insurance. (On the move).
April 1, 2002... Paul Thambar ACMA has recently been appointed business process improvement (BPI) manager at QBE Insurance in Sydney, Australia. Thambar will be responsible for project managing a BPI and change management programme in the workers' compensation...

International Cricket Council. (On the move).
April 1, 2002... The International Cricket Council (ICC) has appointed Faisal Hasnain (left) as its first chief financial officer. He joins from Citibank, London, and has previously worked in Pakistan and Saudi Arabia. On the move is edited by Louisa...

F Hoffman-La Roche. (On the move).
April 1, 2002... F Hoffman-La Roche has appointed Nathan S G Vaidyanathan ACMA as global head, pharma finance information management. Vaidyanathan has worked as a consultant in various SAP implementations in the company and has also been a senior consultant at...

Andersen. (On the move).
April 1, 2002... John Smith, director of finance, property and business affairs at the BBC, has been appointed as a member of the Accounting Standards Board (ASB) and chairman of the ASB's public sector and not for profit committee (PSNC). Smith has been a...

Kier Residential. (On the move).
April 1, 2002... Laurence Garner has been appointed finance director at Kier Residential, where he will have responsibility for handling the financial matters of the four divisions of the company, which include Allison Homes, Bellwinch Homes, Kier Homes and...

Global Executive. (On the move).
April 1, 2002... Interim management supply specialist Global Executive has appointed Barry Waller as its new business development director. Waller joins the company from Robert Half International. On the move is edited by Louisa Roberts. Please e-mail her...

Mondas Information Technology. (On the move).
April 1, 2002... Financial and e-business specialist Mondas has appointed Tom McClelland as technical director of Mondas Information Technology. McClelland was previously director of DSR (Resource). On the move is edited by Louisa Roberts. Please e-mail her...

Axiom Executives. (On the move).
April 1, 2002... Ken Dickson FCMA has recently launched Axiom Executives, a consultancy specialising in strategic financial management advice via director-level input. Dickson was previously finance director of NetConnect. On the move is edited by Louisa...

Diary of events.
April 1, 2002... Hot topics pension courses 11 April, London; 6 June, Warwickshire; 4 September, Leeds; 12 November, London. Topics will cover issues such as the implications of the Myners review and the new FRS17 accounting standard, the minimum funding...