Financial Management (UK) articles from December 2008

Financial Management (UK) archives from December 2008

2008 was remarkable for the best and worst reasons, but CIMA members are best placed to lead organisations in 2009.(in business)(Chartered Institute of Management Accountants)
December 1, 2008... [ILLUSTRATION OMITTED] There is no doubt that 2008 will go down in history as a tumultuous year. Records being broken at the Olympics and Paralympics in Beijing, Barack Obama's US election victory and the recognition of the urgent need to...

Pull out the stops.(letters)(Letter to the editor)
December 1, 2008... Your timely and informative article on corporate fraud ("Feeling the pinch", October) explores some of the options open to staff who uncover cases of embezzlement. My own experience while working for CapGemini's finance and employee...

Back to basics.(letters)(Letter to the editor)
December 1, 2008... Given our current economic problems, I think we should be asking what accountants can do to help ease the global financial crisis. Can we help to prevent a future crisis of a similar nature? [ILLUSTRATION OMITTED] First, we have to go...

Heated debate.(letters)(Letter to the editor)
December 1, 2008... At last. Craig Griffiths (Letters, October) has given us the truth. All the amazing efforts and great expense lavished on reducing carbon emissions are a total waste. They simply provide a new (and politically correct) industry with a means of...

Post taste.(letters)(Letter to the editor)
December 1, 2008... I read with interest the results of the CIMA membership survey, which appeared in the November issue. The right to use the letters ACMA or FCMA was seen by members as the second-most important reason for maintaining their membership. It is...

CIMA panel puts ethics to the test.(first in ...: All the latest news affecting accountants in business, including regulations updates)
December 1, 2008... [ILLUSTRATIONS OMITTED] Experts clashed over the question "Is global ethics a myth" at a CIMA debate chaired by broadcaster Jon Snow in London. Andrew Nell, publisher of Press Holdings Group, argued that the financial crash had...

Businesses warned to prepare for corruption clampdown.(first in ...: All the latest news affecting accountants in business, including regulations updates)
December 1, 2008... A new Law Commission report that sets out recommendations to clarify UK legislation on bribery has increased pressure on companies to monitor their operations and ensure compliance. [ILLUSTRATION OMITTED] The report, "Reforming...

CIMA wins award for qualification in Islamic finance.(first in ...: All the latest news affecting accountants in business, including regulations updates)
December 1, 2008... [ILLUSTRATION OMITTED] CIMA has won the KLIFF Islamic Finance Award 2008 for its certificate in Islamic finance. The institute, which was the first chartered accountancy body to offer a global qualification in Islamic finance, accepted the...

Loans given the green light.(first in ...: All the latest news affecting accountants in business, including regulations updates)(interest free loan for companies)(Brief article)
December 1, 2008... The Carbon Trust has doubled the maximum of its interest-free energy-efficiency loans from 100,000 [pounds sterling] to 200,000 [pounds sterling] and increased the overall annual amount available for loans by 45 per cent to 31m [pounds...

OECD joblessness to increase by 24%.(first in ...: All the latest news affecting accountants in business, including regulations updates)
December 1, 2008... The number of unemployed people in OECD countries will rise by about eight million to 42 million over the next two years, according to the latest OECD Economic Outlook. The OECD predicts that US output will fall in the first half of 2009...

The 2008 CIMA Financial Management Awards.(first in)
December 1, 2008... [ILLUSTRATION OMITTED] 1 Small to medium-sized employer of the year. Winner: Everest. From right: Gyles Brandreth, guest speaker; Ray Perry, director of brand at CIMA; the Everest team. [ILLUSTRATION OMITTED] 2 Innovation in...

Derek Crane ACMA: Managing director and COO, Pacific Alliance Group, Hong Kong.(ONE2ONE)(Cover story)(Company overview)
December 1, 2008... [ILLUSTRATION OMITTED] What does Pacific Alliance do? We manage alternative investments. The group was founded in 2002 with $10m (6.5m [pounds sterling]) and by the time I joined in 2007 it had grown to $2.5bn. We now have $4.5bn in...

Expend and expand: the downturn offers numerous growth opportunities for firms that are bold enough to take them, writes Paul Strzelecki, who offers his tips for securing flexible finance when few investors are willing to provide it.(opinion)
December 1, 2008... Companies tend to react to recessions in one of two ways: they can sit tight, retrench and simply wait for the upturn; or they can see it as a chance to revamp their products, services and balance sheets--and to take market share from their...

Condemned sells: the UK has strengthened its legislation against sharp marketing practices, writes Neil Hodge, But it's so wide-ranging that even reputable advertisers should ensure that they aren't breaking the law.
December 1, 2008... [ILLUSTRATION OMITTED] Two regulations have come into force that will give UK consumers and businesses greater protection from misleading advertising and clamp down on other dishonest marketing activities. Both enable courts to fine...

The probity probe: CIMA professionals are duty-bound to observe the highest standards of integrity, but few ethical issues are back and white, Danielle Cohen and Helenne Doody invite you to test yourself in their festive quiz.
December 1, 2008... Eighty-five per cent of companies have suffered at least one fraud in the past three years. That's according to a recent worldwide poll of 900 senior executives--one of many surveys that have attempted to estimate the scale and cost of fraud to...

Hearts and minds: for a firm to succeed with its environmental initiatives, it has to win its employees over to new ways of thinking and acting, Anne Petrie hears from four blue-chip firms that have worked hard to engage their people.(THE GREEN GAMEPLAN in association with the Carbon Trust)(Company overview)
December 1, 2008... [ILLUSTRATION OMITTED] Having a detailed plan for cutting your organisation's carbon emissions is all very well, but even the best-laid plans will go adrift without the full backing of your workforce. And this support is worth hard cash....

Freight accompli: a major South African railway network has won a CIMA Financial Management Award for its innovative activity-based costing system. Luis Gillman explains how he and his team developed it.
December 1, 2008... [ILLUSTRATION OMITTED] Transnet Freight Rail (TFR) is South Africa's sole provider of railway freight services. The company moves about 180 million tonnes of goods over its 17,000km of track every year and has an annual turnover of R16.5bn...

Silver linings: Toby Fowlston explains how talented CIMA professionals can enhance their careers during the downturn--if they are prepared to be flexible.(career development)(Chartered Institute of Management Accountants)
December 1, 2008... [ILLUSTRATION OMITTED] While the credit crunch has undoubtedly made life difficult, the economy is a long way from being in meltdown and plenty of job opportunities remain for accountants in certain industries. Some sectors are holding...

Costing systems: a new study has found that the accuracy of the time estimates provided by employees is far from perfect, which may affect the use of time-driven ABC.(technical matters)
December 1, 2008... Managers base key decisions on the data reported by product costing systems. To prevent them from making bad ones, it's crucial that these figures are accurate. Our CIMA-sponsored study focused on the accuracy--or otherwise--of time estimates...

Risk management: Catherine Cotter recommends that finance departments take the initiative in integrating risk management with performance management.(technical matters)
December 1, 2008... A recent study by IBM found that 62 per cent of companies with annual revenues exceeding $5bn had encountered a material risk event over the past three years--and that, of those, 42 per cent hadn't been well prepared for it. Its survey of more...

Fund management: Ian Dewing and Peter Russell present the findings of their research into the corporate governance of UK with-profits life insurance funds.(technical matters)
December 1, 2008... The UK has the largest insurance industry in Europe and the third-largest in the world. More than 400bn [pounds sterling] is invested in with-profits life insurance. In 2001 the newly established Financial Services Authority (FSA) undertook a...

Defined-benefit pensions: a DB scheme is a burden that should be managed the same way as any other significant risk.(technical matters)
December 1, 2008... With unprecedented turbulence on the stock markets affecting the financial health of pension funds, cash-strapped companies are urgently seeking ways to reduce their pension risks. The provision of defined-benefit (DB) pensions for employees...

Student one2one: Surath Chandrasena: student, Bangalore University.(study notes)
December 1, 2008... [ILLUSTRATION OMITTED] Congratulations--you are the only student in CIMA history to have won a local or global prize for each of the six papers at managerial level, What are the secrets of your success? My mantra is "study smart". I...

Organisational management and information systems: Iryna McDonald describes how an organisation can optimise its performance by structuring resources along four operational dimensions.(study notes)
December 1, 2008... Students often associate the concept of operations with manufacturing alone, but the processes that transform a set of inputs into outputs are also integral to service industries. To compete successfully, organisations need to understand their...

Management accounting--financial strategy: many students find intangible assets hard to handle, William Parrott explains three methods of calculating the total value of a firm's intangibles.(study notes)
December 1, 2008... Basic valuation techniques are examined in almost every P9 paper and candidates generally fare poorly on such questions. In particular, they often fail to make any attempt to value intangible assets. Some even seem to believe that, if there are...

Management accounting--decision management: Ian Janes offers his guide to a problem area for P2 candidates: the approaches that managers can take when faced with "risky" decisions.(study notes)
December 1, 2008... Several decision-making techniques are available to a manager facing a range of possible outcomes from a course of action. Generally, the technique chosen will depend largely upon the manager's level of knowledge about the likelihood of their...

Exam notice.(study notes)(Chartered Institute of Management Accountants test result for exam )
December 1, 2008... Visit www.cimaglobal.com regularly for updates. November 2008 exam results The results will be sent out by first-class post or airmail on January 15, 2009 for TOPCIMA and strategic level papers, and on January 22 for managerial level...

E-mail your opinions to CIMA's new address and help to shape the future.(institute update)
December 1, 2008... The institute's research team is committed to facilitating strategic studies that directly benefit members and students around the world, writes Simon Davies, CIMA's customer and insight manager. Our work includes analysing and impartially...

Elections to council 2009.(institute update)(candidate election in Chartered Institute of Management Accountants)(Brief article)
December 1, 2008... Retirements by rotation Notice is given that, as the term of office of the council members in CIMA electoral constituencies 1, 2, 3, 4, 5, 6, 7, 11 and 12 expires at the end of the annual general meeting in June 2009, elections will be...

Council gives green light to 2010 syllabus.(institute update)(new syllabus for Chartered Institute of Management Accountants candidates)(Brief article)
December 1, 2008... [ILLUSTRATION OMITTED] At its October meeting, CIMA's council approved proposals for the next generation of its professional qualification: the chartered management accounting qualification 2010. The new syllabus was developed in...

CIMA global events: President's dinner.(Past events)(Chartered Institute of Management Accountants)(Calendar)
December 1, 2008... [ILLUSTRATION OMITTED] Glynn Lowth hosted the institute's 89th annual president's dinner in London on October 23, The event brought together 200 of CIMA's most valued stakeholders, The guest speaker was Nigel Turner, chief executive of BMI...

Coming events.(Chartered Institute of Management Accountants)(Calendar)
December 1, 2008... India The Times education exposition Until January Mumbai, Delhi, Kolkotts, Pune, Bangalore and Ahmedabad CIMA is one of the key sponsors of The Times education exposition organised by The Times of India group....

Interim finance director: Dave Butler explains why quitting your permanent job to go freelance can be a smart move even during a downturn.(so you want to be ...)(Russam GMS)
December 1, 2008... [ILLUSTRATION OMITTED] Life as an interim financial manager will offer you a stimulating and challenging career--the chance to work in different industries, acquire new skills and embrace a more independent and flexible way of working. ...

Kingdom Finance.(On the move)
December 1, 2008... Stanslous Paraffin ACMA has been appointed managing director of Kingdom Finance, a subsidiary of Kingdom Bank Africa, based in Botswana. He was previously FD at BotswanaPost.

Geosan/Construction Dynamics.(On the move)
December 1, 2008... Tony Wharton ACMA has become finance manager for Geosan/ Construction Dynamics, based in Qatar. He was previously the accountant for the Dummer Cricket Centre in Hampshire,

They say "percentage"; we say "percentage points".(... last out)
December 1, 2008... "2.5 per cent cut in VAT not best way to boost economy." PKF. "... A 2.5 per cent VAT reduction will be swamped by memories of 20 per cent promotions and they will see little extra in their monthly pay packets." BDO Stoy Hayward....

Lone voices in the wilderness.(... last out)
December 1, 2008... "The 2.5 percentage point cut in VAT, from 17.5 per cent to 15 per cent, will come into effect on Monday." The Times, November 25. "The cut in VAT to 15 per cent is 'reckless bait' that will do little to stimulate consumer spending, despite...

If you've been on Mars ...(... last out)
December 1, 2008... [ILLUSTRATION OMITTED] "London's financial services industry is experiencing one of its most difficult periods for some years and this is causing hiring activity in the sector to continue to slow significantly." Morgan McKinley London...

Jolly good show.(... last out)
December 1, 2008... "UK entrepreneurs determined to tough it out." Grant Thornton.

They would say that, wouldn't they?(... last out)
December 1, 2008... "Conservatives have no solutions to today's problems--Clegg." Press release from the Liberal Democrats.

Zephyr of change.(... last out)
December 1, 2008... "We need to generate a tornado within our organisations, a furious wind that blows away the cobwebby, lacklustre habit of paying mere lip-service to the idea that our customers are why we are in business." Charteris via Da Vinci Public...

Anxious third.(... last out)
December 1, 2008... "According to figures released today, accounting and finance professionals are facing huge levels of stress at work. A worrying 31 per cent cite insecurity over their job as a key cause of stress." The Badenoch & Clark "Happiness at work"...

Anatomically confusing.(... last out)
December 1, 2008... "The shapes of our bottoms seriously affect our lives, sometimes casting big shadows over the way ahead... We moved from navel-gazing, about whether the credit crunch would be followed by a downturn, to staring at the bottom ahead of us and...

Really useful research.(... last out)
December 1, 2008... [ILLUSTRATION OMITTED] "74 per cent of accountants are comfortable using iPods compared with 59 per cent of the public who think accountants can use iPods. 78 per cent of accountants in Leeds have more than 50 Facebook friends compared...

Can you see a pattern emerging?(... last out)
December 1, 2008... "The current bigredbox[R] server appliance range includes bigredbox[R]15, bigredbox[R]30, bigredbox[R]50, bigredbox[R]75 and bigredbox[R]100..." Verbal Communications.