Financial Management (UK) articles from January 2002

Financial Management (UK) archives from January 2002

Editor's letter. (Comment).
January 1, 2002... January is the traditional month for new starts and resolutions, but with the economic horizon still cloudy, many people will not be embracing the new year with as much enthusiasm as in previous years. Threats of redundancy and reduced bonuses...

CBI targets poor sick leave record. (News Round-up).
January 1, 2002... Absence from work costs the UK 23 billion a year, according to a report by the Confederation of British Industry (CBI). Business and Healthcare in the 21st Century blames this on an inadequate and poorly funded healthcare system and says that...

Firms reduce payment delays. (News Round-up).
January 1, 2002... British businesses are winning the battle against late payment. Firms with turnovers of less than 1 million have reported that customer payment delays have dropped from an average of 25 to 19 days over the past six months, according to figures...

ASB issues revised FRSSE. (News Round-up).
January 1, 2002... The Accounting Standards Board has issued Financial Reporting Standard for Smaller Entities (FRSSE). This is the fourth version of the FRSSE and is effective for accounting periods ending on or after 22 June 2002. Much of the revised FRSSE is...

UK businesses ignore euro risks: firms are failing to prepare for the new EU currency. (News Round-up).
January 1, 2002... Many UK businesses have not adapted to the introduction of the euro and are facing serious commercial risks from errors and fraud, industry experts have warned. The new currency will affect 62 per cent of UK firms and more than a quarter of...

Treat gurus with scepticism. (News Round-up).
January 1, 2002... Management accountants should defend their sector against fads and gurus, Professor Brian Rutherford of Canterbury Business School told a recent JDipMA chapter meeting. He urged older CIMA members to instil a "healthy scepticism" in young...

Call for share option changes: industry insiders are arguing that publishing employee share options as an expense would increase firms' financial transparency. (News Round-up).
January 1, 2002... More than 80 per cent of financial analysts and portfolio managers believe that share options granted to employees are compensation and should be treated as an expense on companies' profit and loss statements, according to a survey by...

Arts thank firms for supporting role. (News Round-up).
January 1, 2002... UK business leaders joined top artists last month to celebrate the growing partnership between the arts and business communities at the Arts & Business Awards. Winners, including ACME Whistles (Birmingham Repertory Theatre), Orange (the women's...

Revenue inquiries triple. (News Round-up).
January 1, 2002... The UK is gaining a reputation for aggressive treatment of transfer pricing by tax authorities, according to a KPMG survey of companies operating under the new UK transfer pricing regime. The regime has led to the number of Inland Revenue...

SMPs call for IFAC support. (News Round-up).
January 1, 2002... A report by a working party of the International Federation of Accountants (IFAC) has called on the federation to do more to support small and medium-sized accounting practices (SMPs). It wants a database set up to provide continuous updates...

New version of Sage software. (News Round-up).
January 1, 2002... Financial software provider Sage has launched the latest version of Final Accounts Production Professional (FAPP), an accounting solution aimed at large accounting firms and their clients. FAPP integrates with Sage Accountants Suite, Sage Line...

SMEs support CPD. (News Round-up).
January 1, 2002... Almost 90 per cent of small and medium-sized accountancy firms believe continuing professional education is very important for accountants, according to a survey by training provider Mercia. But only half thought it was important to train...

Stock market valuation `unfair'. (News Round-up).
January 1, 2002... Almost 95 per cent of mid-cap firms (those with a market capitalisation of between 40 million [pounds sterling] and 1 billion [pounds sterling]) think the stock market values their firms unfairly, according to a MORI survey for business...

SMEs call for better advice. (News Round-up).
January 1, 2002... Small UK businesses are suffering from a lack of financial and business advice, according to a survey by funds4growth.com, a website aimed at helping firms to source advice. Over two-thirds of respondents said their businesses would thrive with...

Software for website integration. (News Round-up).
January 1, 2002... Software provider TXT e-solutions has introduced its multi-channel content management solution to the UK. TXT Polymedia, which has been successful in Italy with clients including Bank Populare, is aimed at medium to large firms. It allows firms...

Simply Accounting 8.5. (News Round-up).
January 1, 2002... Financial software firm Accpac has launched an enhanced version of its internet-ready, single-user Simply Accounting software. The 8.5 version, which is built on Microsoft Access and. is aimed at SMEs, offers improvements to order processing...

Start saving for a rainy delay: the Met Office is urging firms to plan ahead to cope with weather problems that are costing UK companies billions each year. (News Round-up).
January 1, 2002... Bad or unexpected weather costs British businesses over 7.6 billion [pounds sterling] a year, according to a report by the Met Office. Problems caused by Britain's unpredictable climate include delayed deliveries, surplus or insufficient stock...

UK firms lose 117 unproductive days each year. (News Round-up).
January 1, 2002... More than half of the working time in the UK is unproductive, according to a survey by management consultants Proudfoot Consulting. Over 117 working days are lost each year in the UK which, despite longer working hours, was the most...

Open-door policy. (Letters).
January 1, 2002... The comments of B Ghosh (FM, November 2001) carry overtones of academic elitism that I would never wish to see fostered by our institute. CIMA retains an open door to people who did not go to university, but who attained a good standard of...

Academic offensive. (Letters).
January 1, 2002... As a CIMA-qualified non-graduate, I found B Ghosh's letter rather offensive. This retired academic comes across to me as a narrow-minded, intellectual snob. CIMA appeals to a broad church of accountants because it is not just graduates....

Independent parties. (Letters).
January 1, 2002... The article "Christmas present" (FM December 2001) is misleading about Civil Service parties. The article focused on how much firms paid for seasonal festivities. It queried whether the recession was forcing companies to curb spending. It then...

Grey matter. (Letters).
January 1, 2002... The letters in Financial Management do not inspire confidence that accountants are ready to dispel the stereotype of grey-suited mothballs. We are told that management accountants are no longer bean-counters, but are active participants in...

Notes on margins. (Letters).
January 1, 2002... David Allen's article "Working in the margins" (FM November 2001) was a breath of fresh air. When helping managers to make decisions, we must be concerned only with the "variables"--those receipts and expenses which would be affected by the...

Market differentiation. (Letters).
January 1, 2002... CIMA has emerged as a proponent of the modern management accounting school of thought. CIMA accountants are not ordinary accountants and they provide services that are beyond traditional accountants. CIMA has been very successful in the UK and...

Relief systems: the chancellor has indicated that he proposes to improve the rate of business asset taper relief, but Trevor James explains the many reasons why the true situation is rather more complicated than this. (Tax).
January 1, 2002... Taper relief reduces the amount of the gain chargeable to tax. The level of relief depends on the type of asset you hold. The longer you hold the asset, the greater the relief. The relief works for whole years of ownership. Assets are divided...

Net present value: a love of gizmos and sound business acumen helped Jonathan Elvidge to create a high street haven for present buyers. He tells Cathy Hayward about the rise of Gadgetshop.com. (Entrepreneur).
January 1, 2002... Most people find it difficult to buy presents. However much you try to plan in advance, you still end up dashing along the high street on Christmas Eve in search of the perfect gift. Come Boxing Day, this panic purchase is already on its way...

It's not behind you: analysing past performance has its place, but assessing future potential is far more important and will also reap much greater rewards. David Allen challenges the focus on backward-looking measurements. (Management).
January 1, 2002... Literature advocating the old "command and compliance" style of management was peppered with the word "measure". Mantras such as "if you can't measure it, you can't control it" and "you get what you measure" were rife. In too many cases,...

Vitamin FTSE: pundits have been asking for months whether the UK economy will necessarily catch cold because the US has sneezed. David Ross predicts that it will in fact fare better in 2002 than its eurozone neighbours. (Economics).
January 1, 2002... The true extent of the divide between the truth and the panic about whether the UK would inevitably plunge into recession along with several other world economies in late 2001 and early 2002 can be clearly shown by taking a closer look at some...

Brief encounters: being an interim manager can give senior executives the job satisfaction they want without tying them down for life. Cathy Hayward finds out what it means to temp at the top end. (Feature interim managers).
January 1, 2002... Imagine spending six months of the year on a Caribbean beach, travelling the world or taking the summer off to spend time with your family. For a growing number of financial managers, that dream is a reality. Not because they've done some...

Care shares: the days when annual reports were just a list of figures are long gone. New-style reports are glossy tomes packed with details about the firm's ethical integrity. Cathy Hayward finds out why wearing your heart on your corporate sleeve wins hearts, minds and purses. (Feature ethics).
January 1, 2002... Annual reports are getting fatter. Supermarket chain Safeway's 2001 report was 68 pages long (compared with 60 in 2000). The detailed financial information took up just 20 pages. The first 40 or so pages explained, with the help of lots of...

Does MVA measure up? It may be popular and lauded by many, but market value added, argue Stephen Keef and Melvin Roush, does not necessarily give an accurate picture of wealth creation. (Feature MVA).
January 1, 2002... In the early 1990s market value added (MVA) was seen as the solution to all financial performance measurement needs. G Bennett Stewart III is typical when, in his book The Quest for Value (1), he says that "maximising MVA should be the primary...

Lore reform: traditional budgeting and planning might have had its day. Mike Bourne, Andy Neely and Herman Heyns explain how companies that are tired of costly and inefficient systems are cooking up radical new ways to drive performance. (Feature budgeting).
January 1, 2002... Recent research shows that 80 per cent of companies are dissatisfied with their planning and budgeting processes. In a survey by the Economist Intelligence Unit, financial directors ranked budgetary reform as their top priority. The...

The bigger picture: little research has been done into management accounting techniques in small firms--until now. Gavin Reid's and Julia Smith's study of SMEs found that efficient information-processing plays a vital role in successful firms. (Feature information management systems).
January 1, 2002... The rise of small entrepreneurial firms as an economic force is well known, but what about their role as processors of information? How do small firms' management accounting systems (MAS) handle information? How does the structure of this...

Corporate giant award. (Managers).
January 1, 2002... Richard North, group finance director at leisure firm Six Continents, has been named as finance director of the year in the Sunday Telegraph corporate giants 2001 awards. North received the award for his role in the firm's disposals and...

Rose's guide to saying `thank you very much'. (Manager).
January 1, 2002... Every manager should have a cash float to treat staff to dinner in a restaurant, a bottle of champagne or the services of a cleaner for a year, according to Michael Rose, director of reward and recognition at insurance group Aon. Rose also...

Top salaries allow retail finance directors to shop around. (Manager).
January 1, 2002... Finance directors in the retail industry receive some of the biggest salaries in the sector, according to William M Mercer's 2001 survey of pay, benefits and human resource policies in retail. Finance directors earn an average of 153,000...

Passengers pay price of terrorism. (Manager).
January 1, 2002... First and business class airfares have risen following the 11 September terrorist attacks in New York, despite increasing numbers of promotional fares, according to the latest American Express European corporate travel index. Business class...

How to motivate staff in the new year: back to business after the party season. (Manager).
January 1, 2002... After a month of pre-Christmas parties and a holiday dedicated to over-indulgence, getting your staff motivated in the first weeks of January can be a real challenge. An overhaul of some of you r management practices ca n help you to refocus...

Gadget of the month. (Manager).
January 1, 2002... The first day back at work in January can be a depressing experience. The party season is a distant memory and summer holidays are months away. That is why so many people start looking for new jobs in the new year. If you think your staff are...

Fall in new car prices. (Aspiring Manager).
January 1, 2002... New car list prices are significantly lower than last year, according to automotive industry research firm CAP Network. This is good news if you're about to qualify for a company car or just want to change model. Manufacturers cut list prices...

Virtual banks fall out of line with real needs. (Aspiring Manager).
January 1, 2002... Banking evolution has progressed rapidly over the past 10 years, but has it come at a price? Once, people stuffed bank notes under their mattresses, then, apart from a few eccentric millionaires, they were persuaded to entrust it to high street...

First and lasting impressions. (Aspiring Manager).
January 1, 2002... Doing well at an interview and being offered the job is only the first hurdle when switching to a new employer, according to Sarah Lyons, managing director of international recruitment agency Parker Bridge. You have to make sure you fit into...

Are you being paid enough? (Aspiring Manager).
January 1, 2002... Are you being paid enough? AREA NEWLY QUALIFIED London large firm 37,500-42,000 SME 32,000-38,000...

How to plan your career. (Aspiring Manager).
January 1, 2002... 1. Start planning early in your career. Ask yourself: do I want to specialise in a certain industry? Do I want to get some experience overseas? Do I want a top corporate position, or am I happy to remain a middle manager? 2. Be realistic...

Look and learn. (Aspiring Manager).
January 1, 2002... An inspirational office can make all the difference between success and failure. Flexible surroundings, for example, improve creativity, while open-plan floors improve communication. The recent Times and Gestetner Digital Office Collection...

Remote controls: in a highly competitive employment market, it is a challenge for companies to attract and retain the top finance professionals. Orla Leonard outlines ways to make sure your employees stay happy and stay put. (Psychology).
January 1, 2002... I've recently become head of an international finance team that unifies employees from our disparate offices around the globe. This seemed a straightforward brief, given the access we have to videoconferencing, e-mails, voicemail and other...

CIMA lecture explains mysteries of performance measurement research. (Institute News).
January 1, 2002... Many countries are facing increasing pressure for accountability in the public sector. The emphasis is on both value for money and the need for a more business-like approach to operations. Performance measurement systems can be used to assess...

Edinburgh hosts annual lunch. (Institute News).
January 1, 2002... The Edinburgh Branch hosted the annual president's lunch at the Crowne Plaza Hotel on the Royal Mile on 13 November 2001. CIMA president Bruce Epsley (pictured below (right) with branch president Patrick Stewart) addressed 75 members and guests...

New members list. (Institute News).
January 1, 2002... A list of all the new members admitted to the institute in 2001 will be published on the CIMA website (www.cimaglobal.com)in the spring. The list will also include members who have retired and those who have died. If you require a paper copy of...

Monthly direct debit dates 2002. (Institute News).
January 1, 2002... Monthly direct debit dates 2002 UK 06/03/02 Ireland 06/03/02 UK 04/04/02 Ireland 04/04/02 UK 03/05/02 Ireland 03/05/02 UK 05/06/02 Ireland 05/06/02 UK 04/07/02...

Institute diary.
January 1, 2002... January CENTRAL LONDON AND NORTH THAMES 16 January Career profile (RPE) evening Time: 6.30 for 7pm Venue: School of Finance & Management, Worthy Down Branch: Central Government Contact: Major Simon Parkes, tel:...

Diary of events.
January 1, 2002... Accounting techniques for better performance management 16 January, Perak, Malaysia Contact: Doreen Tan on +60 (0) 3-7805 1591, or e-mail her at: doreen.tan@cimaglobal.com Balanced scorecard 20 January, Selangor, Malaysia...

Neil Morrison ACMA has been appointed finance director and company secretary of both Dohler (UK) and Dohler NFI, two UK subsidiaries of the Royal Cosun Group. (On the move).
January 1, 2002... Neil Morrison ACMA has been appointed finance director and company secretary of both Dohler (UK) and Dohler NFI, two UK subsidiaries of the Royal Cosun Group. In his new role, Morrison will be responsible for finance, IT and HR (including...

Tucker Energy Services. (On the move).
January 1, 2002... Paul Emery ACMA has been appointed chief financial officer of oilfield services group Tucker Energy Services, based in Houston, Texas. Prior to this, he was group controller, USA, for HCI. Emery has held several positions in North America with...

Weymouth and Portland Housing. (On the move).
January 1, 2002... Alan Gorringe ACMA has been appointed director of resources of Weymouth and Portland Housing, a registered social landlord owning 3,000 units of accommodation transferred from the local council 18 months ago. Gorringe was previously financial...

Zambia National Building Society. (On the move).
January 1, 2002... Vincent N Kamuti FCMA has been appointed managing director of the Zambia National Building Society. Previous roles at the company include director of finance and manager, audit and inspection. Kumati has also held positions at Zambia Industrial...

International Reservations. (On the move).
January 1, 2002... CIMA student Paul Neale has been appointed financial controller and company secretary of hotel booking agency International Reservations. Neale joined the company as an accountant in 1996, but left to join Tri/Mark Europe, a wholly owned...

Tibbett & Britten Group. (On the move).
January 1, 2002... International contract logistics and supply-chain management company Tibbett & Britten Group has appointed Mark Whiteling as group finance director. Whiteling joins the company after four years as chief financial officer of the food equipment...

Cobra Beer. (On the move).
January 1, 2002... Cobra Beer has appointed Dynshaw Italia as its new financial director. Italia has worked as an assistant manager at KPMG and has also worked atebookers.com as director of financial operations.

Hays. (On the move).
January 1, 2002... Hays has appointed Pierre Danon as a non-executive director. Danon is a director of BT Group and chief executive of BT Retail, where he is responsible for managing the company's 21million UK customer relationships, ranging from residential...

Institute of Internal Auditors. (On the move).
January 1, 2002... Liz Sandworth has been elected president of the Institute of Internal Auditors (IIA). Sandworth has run her own business, Sandworth Audit Services, which advised clients such as broadcast group Channel 5. As president of the IIA, she will...