Financial Management (UK) articles from April 2003

Financial Management (UK) archives from April 2003

Editorial comment.(U.K. businesses could be affected by military action in Iraq)(Editorial)
April 1, 2003... After months of speculation and anticipation, we are now at war. As FM goes to press, tanks are rolling towards Baghdad. Most people, whether for or against the war, are hoping for a short and conclusive conflict with as few casualties as...

Increase in red tape costs 14bn [pounds sterling]. (News Round Up).(Brief Article)
April 1, 2003... The cumulative cost of regulations introduced over the past four years has risen from 6 billion [pounds sterling] to more than 20 billion [pounds sterling] and is crippling businesses in the UK, according to a report by the British Chambers of...

Big firms take to CSR reporting. (News Round Up).(Brief Article)
April 1, 2003... Europe's top 100 companies have significantly increased the level of ethical reporting in their annual statements, according to a report from public relations firm Prowse. In 1999 only 12 per cent of Europe's top firms included a statement of...

Gulf evacuations create tax poser; expat employees could be liable for a massive bill. (Inland Revenue).
April 1, 2003... British businesses face costs of 2.7 billion [pounds sterling] in tax and national insurance payments if expatriate staff stationed in the Gulf are forced to return home before 6 April as a result of the war in Iraq. Around a quarter of...

Problems dog international convergence effort. (Accounting Standards).(Brief Article)
April 1, 2003... The creation of a global accounting language is several steps nearer, but obstacles to achieving full convergence remain, according to two research reports on the adoption of international accounting standards (IASs). A survey by the...

NHS chiefs withhold pay data; Treasury reporting guidelines have been widely ignored. (Executive Reward).(National Health Service)
April 1, 2003... A large number of top managers in the National Health Service, including 50 chief executives, have refused to disclose their salaries and pensions in the latest set of health authority accounts. In spite of advice from the Treasury to...

Call for tax evasion clampdown. (News Round Up).(Brief Article)
April 1, 2003... Increasing numbers of accountants will be jailed for tax evasion if the Inland Revenue follows the latest advice from the National Audit Office. It is calling on the Inland Revenue to extend the number of criminal prosecutions to deter...

Big names in FTSE 100 exodus. (News Round Up).(Brief Article)
April 1, 2003... British Airways, Royal & Sun Alliance, Rolls-Royce and Invensys fell out of the FTSE 100 at last month's quarterly review. They were replaced by Kelda Group, the Foreign and Colonial Investment Trust, Provident Financial and Cable and Wireless....

Brown prepares `pick-me-up'; be prepared for more increases in national insurance. (Budget 2003).(Gordon Brown)
April 1, 2003... The changes to national insurance contributions (NICs) announced last year by the chancellor will take effect this month and raise 8 billion [pounds sterling] for the Treasury, but that's unlikely to stop him making further changes to NICs in...

The Accounting Standards Board has published an exposure draft of an application note to FRS5, Reporting the Substance of Transactions. (Technical Update).(Brief Article)
April 1, 2003... The Accounting Standards Board has published an exposure draft of an application note to FRS5, Reporting the Substance of Transactions. The intention is to ensure that entities report turnover in accordance with the substance of their...

The Charity Commission (www.charitycommission.gov.uk) has issued a new version of CC14, Investment of Charitable Funds, as a result of the Trustee Act 2000, which changed the way that charities approach investment decisions. (Technical Update).(Brief Article)
April 1, 2003... The Charity Commission (www.charitycommission.gov.uk) has issued a new version of CC14, Investment of Charitable Funds, as a result of the Trustee Act 2000, which changed the way that charities approach investment decisions. The guidance covers...

Gulf war puts system market on hold. (IT News Round-Up).(Brief Article)
April 1, 2003... Companies are delaying decisions to buy financial software until the economy improves and the situation in the Middle East is resolved, according to exhibitors at the Softworld accounting and finance show in London last month. "The market...

FDs lose enthusiasm for euro-compliance matters. (IT News Round-Up).(finance directors)(Brief Article)
April 1, 2003... The euro, once a software scare story on par with Y2K, is no longer a big issue for finance directors who are buying or upgrading their systems, according to a Financial Management survey of major suppliers at the Softworld accounting and...

Accountancy practices software firm Iris has launched Iris Financials, an integrated bookkeeping system designed to simplify accounting for small businesses. (Technology News In Briefs).(Brief Article)
April 1, 2003... Accountancy practices software firm Iris has launched Iris Financials, an integrated bookkeeping system designed to simplify accounting for small businesses. It joins Iris PAYE-Master, which is used for payroll processing by 20,000 businesses,...

Coda has introduced Coda-Dream, a financial accounting solution for small and medium-sized enterprises. (Technology News In Briefs).(Brief Article)
April 1, 2003... Coda has introduced Coda-Dream, a financial accounting solution for small and medium-sized enterprises. The product, which was previously SquareSum's Dream accounting solution, will be integrated with Coda-Intelligence, the foundation for...

Sage has launched the next generation of Sage Line 100, its mid-range business software. (Technology News In Briefs).(Brief Article)
April 1, 2003... Sage has launched the next generation of Sage Line 100, its mid-range business software. New commercial modules have been rewritten and remodelled, allowing complex business processes to be set up and completed more easily.

PS Financials has introduced version 5.0 of its financial accounting and business management software. (Technology News In Briefs).(Brief Article)
April 1, 2003... PS Financials has introduced version 5.0 of its financial accounting and business management software. It has also announced a partnership with Torex Retail.

Members' priorities survey 2003. (Institute News).(Brief Article)
April 1, 2003... Members' priorities for this year are performance management and reporting (54 per cent), followed by budgeting (51 per cent), according to a survey by CIMA's Technical Services and Marketing Intelligence Unit. Members were particularly keen...

Computer system upgrades. (Institute News).(Brief Article)
April 1, 2003... CIMA is updating its computer system and business processes from the beginning of May. In the coming months, significant improvements will be made to the way it processes information and handles administration. Please be patient while these...

Presidential engagements. (Institute News).(Illustration)(Calendar)
April 1, 2003... 1 April ICAEW dinner, London 11 April Stoke Branch dinner, Stoke 16 April Central London and Central Government Branch, CIMA head office 24 April Association of British Accountants in ...

Monthly direct debit dates 2003. (Institute News).(Illustration)
April 1, 2003... Monthly direct debit dates 2003 UK 04/04/03 Ireland 04/04/03 UK 06/05/03 Ireland 06/05/03 UK 04/06/03 Ireland 04/06/03 UK 04/07/03 Ireland 04/07/03 UK ...

CIMA faces up to future challenges. (Institute News).
April 1, 2003... In its first meeting of 2003, council received the provisional out-turn for 2002 and approved the budget for 2003. Charles Tilley, CIMA's chief executive, reported that, although revenues in 2002 were below budget (mainly in the areas of goods...

CIMA Malaysia woos MIA with ethics card. (Institute News).(Malaysian Institute of Accountants)(Brief Article)
April 1, 2003... Stepping up its efforts to woo members of the Malaysian Institute of Accountants (MIA) to pursue the CIMA qualification, CIMA Malaysia Division held the second launch of its special exemptions for MIA members in Sarawak, Malaysia. The deputy...

Cartesis[R]: the `fast close' debate has again come under the spotlight. What role can technology play in helping businesses to accelerate their reporting processes? (Questions & Answers).
April 1, 2003... The fast-close debate started several years ago, so why is it hotting up again? It never really went away. More and more firms are trying to shorten their reporting timetables and many have made significant progress. Analysts are viewing...

A sporting chance. (Letters).(Letter to the Editor)
April 1, 2003... What sustains the sports entertainment business when all around it is insolvent? Although firms in every other sector are faltering, it's rare to read about the failure of a major sporting enterprise. Minor football clubs still seem to manage...

Football crazy. (Letters).(Letter to the Editor)
April 1, 2003... I can only hope that David Wells was joking in suggesting a complex handicap system to cancel out the financial inequity between football clubs (Letters, March). I wonder whether this is perhaps a devious plan by Wells, a Dorset man, to...

Supporting roles. (Letters).(Letter to the Editor)
April 1, 2003... I am increasingly appalled at the timidity of our profession and the lack of confidence it has in its contribution. This ranges from the never-ending debate on whether the term "accountant" should be used to the crass suggestions in the article...

Long live the annual report. (Letters).(Letter to the Editor)
April 1, 2003... The article on the anticipated demise of the annual report ("Better late than never?", March) is, I hope, a little premature. Reality and reporting need to be more closely aligned. Strategy takes time to implement, and the true significance of...

Straighten up and fly right. (Letters).(Letter to the Editor)
April 1, 2003... As a manager at British Airways, I was disappointed in your article on airlines (March). This isn't a response to its content, but I feel that more could be made of the entire subject. There are many studies used to demonstrate how...

Power to the people. (Letters).(Letter to the Editor)
April 1, 2003... "Precious joules" (February) gives great illustrations of what companies can do to reduce their energy costs. The problems in the Middle East are forcing the industrialised world to think hard about reducing its consumption of energy and...

All disquiet on the home front: as FM goes to press, a short, sharp conflict in Iraq seems less certain and equity markets are falling. After its initial optimism, the City is suffering a severe attack of the jitters. (City).
April 1, 2003... If there's one thing that markets hate, it's uncertainty. War, of course, is the ultimate in uncertainty: until the first round is fired, it may be anticipated but is never inevitable. In the months before the assault on Iraq, war was seen...

Mobility aids: the EC is cracking down on member states that grant tax incentives only to domestic retirement plans. Mark Sullivan explains how this will affect firms that employ people across borders. (Pensions).
April 1, 2003... In an unprecedented step, the European Commission has taken action against six countries over the unfair treatment of tax on pensions affecting the mobility of labour in Europe. This move should create a number of administrative and financial...

Desperately seeking Suzen? Two contrary rulings from the European Court of Justice have shrouded the law on transfers of undertakings in complexity for years, writes Sue Nickson, but the situation might soon improve. (Legal).
April 1, 2003... In Pinnacle AIC Ltd v Honeyman & Cape Industrial Services Ltd the courts have been reviewing the vexed question of whether the Transfer of Undertakings (Protection of Employment) Regulations 1981 (Tupe) apply on a change of contractors where no...

Nervous wreckers: everyone is afraid of something, but times of economic turbulence and war create a host of new fears for managers and their staff. Jan Bailey explains how leaders can limit the damage. (People Management).
April 1, 2003... Since the 11 September attacks on the US, businesses have faced ongoing terrorist threats, massive corporate scandals and a plunging stock market. Now war has been declared on Iraq, despite major political divisions in Europe. All these events...

Adoption panel: when should the UK join the single currency? Or should it join at all? Cathy Hayward puts the debate in political context and, on the following pages, Margaret and Ross Maynard assess the problems and benefits experienced by the euro's early adopters, the eurozone as a competitor to the US--and the likely effects of Britain's failure to join the party. (Cover feature: the euro debate).(Cover Story)
April 1, 2003... As FM goes to press, the government has its sights trained on targets beyond Europe. The events unfolding in the Middle East are dominating the political agenda and the issue of whether Britain should join the single currency is being nudged...

Crystal clearance: one of the most obvious effects of the single currency has been to increase price transparency in the eurozone. Although this has been good news for consumers, it has forced many businesses to rethink their pricing strategies. Gavin Reid and Julia Smith explain some of the new approaches. (EU Price Transparency).
April 1, 2003... The eurozone is a major economic coalition. Covering a population of around 350 million, it closely rivals the US in terms of its combined gross domestic product and share of world trade. The introduction of the single currency on 1 January...

Exchange and mart: it's still too soon to assess the single currency's long-term effects on trade among the eurozone nations. But research by Geoff Pugh and David Tyrrall into the ERM shows that the elimination of exchange rate fluctuations offers a significant boost to import and export activity. (EU Exchange Rate Variability).
April 1, 2003... Since the Bretton Woods system of fixed exchange rates broke down in 1973, businesses have traded across borders in an environment of unstable and unpredictable exchange rates. For the time being, that uncertainty has ended in the 12 European...

A Winter's tale: the European Commission's attempts to harmonise company law in the EU have been criticised before for being more concerned with political dogma than business needs, writes Stephen Copp. But recent developments--particularly the report of its legal expert group--suggest that harmonisation might be a positive force for reform. (EU Company Law).
April 1, 2003... A prominent legal academic called Len Shaw, writing in his 1984 book Company Law and Commercial Reality, recalled a conversation he'd once held with a politician who'd had considerable experience of European affairs. "You don't understand...

Partly politics: the debate on joining the single currency will inevitably be influenced by emotional arguments about Britain's role in Europe, but the Treasury is keen to keep the decision scientific. Stathis Gould questions whether the five tests can ever be truly objective and asks how we will know when the criteria are met. (EU Five Economic Tests).
April 1, 2003... "A fudge", maybe even a deliberate one, is what many people have called the five economic tests upon which the UK government will base its decision whether or not to propose Britain's entry into the single currency. "Sensible" is another word...