Financial Management (UK) articles from July 2002

Financial Management (UK) archives from July 2002

Editor's letter.(Editorial)
July 1, 2002... There is no doubt that branding is important to commercial success. But if the brand is important, what sits underneath it is more so. In a political climate where image and spin are everything, it is easy to forget that a brand should reflect...

ASB starts UK alignment drive. (Technical Update).(Accounting Standards Board)(Brief Article)
July 1, 2002... The Accounting Standards Board (ASB) has published seven exposure drafts on proposed new British standards. This represents the first step towards aligning them with international standards. The drafts are: * Fred-23: Hedge Accounting. ...

IASB aims to alter 12 standards. (Technical Update).(International Accounting Standards Board)(Brief Article)
July 1, 2002... The International Accounting Standards Board (IASB) has published proposals to revise 12 of its 34 active standards. Its plans, in the form of an exposure draft entitled "Improvements to International Accounting Standards", aim to eliminate...

System change puts FT in the pink: the publishing group has replaced a `mass of spaghetti'. (Technology).(Financial Times Group)(Brief Article)
July 1, 2002... The management accounting function at the Financial Times Group has been transformed by its introduction of new financial and IT processes and a change in departmental structure. The publishing company decided to review its financial...

Banks' outsourcing fad `will benefit customers'. (News Round-Up).(Brief Article)
July 1, 2002... The dramatic increase in the number of banks that are choosing to outsource non-core activities will result in a better deal for corporate customers, according to Brendan Jones, vice-president of financial services at Unisys. Banks and...

M&S reveals survival secrets: Vandevelde cites a mix of short- and long-term moves. (Strategy).(Marks and Spencer)(Brief Article)
July 1, 2002... A combination of rapid action and forward planning is essential if businesses are to survive in challenging economic times, industry leaders told delegates at last month's CBI business summit, sponsored by CIMA. Luc Vandevelde, the...

Accusations of hypocrisy fly as Sage contests MS `monopoly'. (News Round-Up).(Brief Article)
July 1, 2002... Sage's official objections to Microsoft's acquisition of Danish software company Navision stem from a mixture of fear and jealousy, according to two of its competitors. "It's a bit of a cheek, because Sage's policy until now has also been one...

Ethics up for discussion. (Technical Update).(Accountancy Foundation's paper)(Brief Article)
July 1, 2002... The Accountancy Foundation's ethics standards board has published a consultation paper to encourage debate about the ethical issues facing accountants in industry, the public sector and private practice. Setting the Agenda for Ethics covers...

Early start for late-payment rule. (Technical Update).(Brief Article)
July 1, 2002... The government has brought forward the last phase of the Late Payment of Commercial Debts (Interest) Act 1998. The third and final phase, which allows businesses of all sizes to claim interest on late payments, was due to be introduced in...

Forward planning from Elevon. (Technical Update).(Elevon Active Financial Planning 1.0)(Brief Article)(Product Announcement)
July 1, 2002... Integrated software company Elevon, formerly known as Walker Interactive Systems, has launched a new budgeting, planning and forecasting tool. Elevon Active Financial Planning 1.0 allows users to monitor, measure and adjust their business plans...

Electronic invoicing platform. (Technical Update).(eSettlements from PeopleSoft)(Brief Article)(Product Announcement)
July 1, 2002... PeopleSoft has introduced eSettlements, an integrated solution for electronic invoice presentation and payment. Aimed at global companies, eSettlements is a common platform for buyers and sellers to exchange and match transactions such as...

SMEs shun final-salary pensions. (Technical Update).(Hazell Carr survey)(Brief Article)
July 1, 2002... More than a quarter of small and medium-sized enterprises in the UK are planning to wind up their final-salary pension schemes or close them to new employees, according to a survey by consulting actuary Hazell Carr. But the FRS17 accounting...

Four out of five ain't bad. (Technical Update).(Taylor Nelson Sofres survey)(Brief Article)
July 1, 2002... Despite the disintegration of Andersen, the enforced separation of audit and consulting practices and calls for tighter regulation, there is some good news for the remaining Big Four. Their overall reputation has remained steady or even...

IFAC issues skills framework. (Technical Update).(International Federation of Accountants' report)(Brief Article)
July 1, 2002... Management accounting is a key skill in "ongoing value creation", according to a research report published last month by the International Federation of Accountants' (IFAC's) financial and management accounting committee. "Competency profiles...

Call for convergence on IASs: firms will win US cash only if SEC accepts new standards. (Reporting).(Brief Article)
July 1, 2002... The newly introduced stipulation that European listed companies must work to international accounting standards (IASs) by 2005 means that investors will be offered greater comparability and transparency of financial data, according to KPMG. But...

How to make sure you get a proper break from work. (News Round-Up).(Bibby Financial Services' survey)(Brief Article)
July 1, 2002... More than 70 per cent of small business owners in the UK are unable to switch off from work while on leave, according to a survey by Bibby Financial Services. Almost 40 per cent check their e-mails and take business calls when they're supposed...

Allen key. (Letters).(Letter to the Editor)
July 1, 2002... I am a CIMA fellow member and I would like to congratulate Financial Management for producing quality articles time and time again since the change in format a couple of years ago. The articles I enjoy reading most are those by David Allen,...

Unique cell point. (Letters).(Letter to the Editor)
July 1, 2002... John Tennent advocates naming cells and ranges when constructing spreadsheet models ("Artificial intelligence", FM June). In my experience this does not make it easier for other people to use the spreadsheet. On the contrary, it is simpler to...

Share issue. (Letters).
July 1, 2002... I agree with Daphne Marler (Letters, FM June) that men are needed to create children. However, it is women who go through childbirth and who nurse the baby. Some organisations grant fathers leave for childcare, but women should get the lion's...

Does the CAPM fit? (Letters).(Letter to the Editor)
July 1, 2002... I read with interest "Justifying the means" by John Pointon on the capital asset pricing model (CAPM) (FM June). The discussion about the equity risk premium is interesting since no one really knows what percentage we should use for it, or...

Degrees of value. (Letters).(Letter to the Editor)
July 1, 2002... My point in my previous letters was that CIMA is seen as weak globally, so I suggested positioning it differently. Management accounting adds value to organisations by enabling proper analysis of information to ensure appropriate...

The state of independents: corporate governance is yet again under the microscope as the government launches another review. Ruth Prickett questions whether a better-defined role for non-execs will emerge from it. (City).(Brief Article)(Statistical Data Included)
July 1, 2002... Businesses, shareholders, professional bodies and governments around the world have been discussing the same question ever since the first board of directors was created: how can investors and employees be confident that their company is being...

Rules of attraction: smaller quoted companies seeking big-league investment have their work cut out in wooing backers. Neil Austin examines a new study into what fund managers really want from them. (Investment).(Brief Article)
July 1, 2002... Attracting attention from fund managers has never been easy for smaller quoted companies (SQCs). Fewer fund managers are looking to increase their investment this year than in 2001 (27 per cent, down from 39 per cent), according to a survey by...

Revision plans: forecasts of UK economic growth are being revised downward but, argues David Ross, retail and house price growth mean the situation is more complicated than it seems at first glance. (Economics).(Brief Article)(Statistical Data Included)
July 1, 2002... Just as the US and leading European economies appear to be emerging from last year's slowdown and forecasters revise their GDP estimates upward for 2002 and 2003, the UK economy seems to be heading in the opposite direction. The Office for...

Warp factor: the recent spate of revenue swapping between organisations has attracted a huge amount of criticism. David Allen explains the twisted logic behind these time-wasting transactions. (Management).(Brief Article)
July 1, 2002... I found it hard to believe when I first read the reports. The directors of various companies were being castigated for having overstated their sales revenues--albeit without affecting their corresponding profit figures as far as we know. How...

Bread head: Adam Storey is determined to do for ring-shaped rolls what Starbucks has done for skinny lattes. The financial controller of high-street caterer Oi! Bagel explains his recipe to Cathy Hayward. (Entreprenuer).(Brief Article)
July 1, 2002... A few years ago, buying a lunchtime sandwich was a simple choice between ham and cheese. But the explosive growth of eateries such as Pret a Manger and Benjy's has revolutionised the industry. It could take you an entire lunch break just to...

Body of evidence: the standard of training provided for salespeople in the UK is remarkably poor, given that they are responsible for revenue creation. Paul Hanley analyses a breakdown in communications. (People Management).(Brief Article)
July 1, 2002... My firm's marketing department recently made a press release. It read: "We at Hanley Associates confirm that we won't be available to participate in the coming recession, owing to a full order book. We apologise for any inconvenience or...

Under the hammer: revelations of a price-fixing cartel between auction houses Sotheby's and Christie's have led to massive penalties for those involved. Ruth Prickett explains proposals to tighten up the UK's competition laws and why all businesses must watch their own actions and those of their competitors. (Cover Feature Competition).
July 1, 2002... While many people get irate about the cost of new cars, CDs and supermarket food, fewer sympathise with a collector or dealer who whinges about the commission for selling the odd Picasso or Monet. But the exposure of a cartel operating between...

Harry's gameplan: the fact that Henry Jackson Byrne has served one company for four decades is a decent indication of the value he places on loyalty and teamwork. The incoming president tells Cathy Hayward that CIMA must encourage its members to get more actively involved in spreading the word about what the institute has to offer. (Interview Harry Byrne).(Interview)
July 1, 2002... Harry Byrne is keen on constancy, continuity and co-operation. He spent his entire career with the Guinness Ireland Group and sees his new role as CIMA president as one of driving forward the team rather than imposing his own agenda. "It's not...

Premier league: do you have what it takes to make the quantum leap from finance director to chief executive? Tony Grundy sets out the extra skills and attributes needed in the top job and explains how to develop them. (Management Careers).
July 1, 2002... When the idea of becoming an accountant was first presented to me as I considered my career options, one of the things that most attracted me to it was the prospect of having an overview of the business. I actually saw this as a possible route...

Signs of the times: when a firm's earnings increase, it's logical to assume that its dividends will also rise, but does the opposite occur when earnings decline? Chin-Bun Tse discusses the extent to which investors can predict the future earnings of a business from its current dividend policy. (Finance Investment).(Statistical Data Included)
July 1, 2002... It's logical to assume that managers know more about their firms' true investment opportunities and profitability than outside investors or analysts, who must base their guesses about a business's future on publicly available information. This...

Electronic ignition: the government has set local authorities the challenging goal of making all council services available on-line by the end of 2005, and has set aside a total of 350 million [pounds sterling] to help them achieve it. Liz Murby reports on their progress so far. (Management E-Government).
July 1, 2002... Soon after it swept into power in 1997, the new Labour government launched its much-vaunted Modernising Government initiative. At the centre of this programme was a commitment to improving public services by seizing the opportunities created by...

The consumer association: one reason why traditional approaches to business planning often fail to deliver is that companies aren't nearly as customer-focused as they'd like to think. Mike Walker ventures beyond the balanced scorecard with customer-driven planning and activity-based costing. (Finance Customer-Driven Planning).
July 1, 2002... A critical issue facing all businesses is how to deliver superior value to their customers at the appropriate cost. The customer-driven approach to business planning provides a logical process that systematically maximises value for both...

Survival list: when the markets in which your firm operates start to decline, the best place to seek solutions is often within the organisation. Deborah Glen raises the questions that companies should ask themselves if they are to work their way through a recession. (How To Survive A Downturn).
July 1, 2002... If you believe what you read in the newspapers, the UK is in a recession. It's at times like this that many companies panic, pushing their sales staff harder, breaking lines of communication and confusing the aim of the business. What they...

ACEs high: the media loves complaining about the amount of cash that many charities seem to be throwing away on internal bureaucracy, but how concerned should we really be about the huge apparent variations in administrative spending across the sector? Rob Paton analyses the results of a recent CIMA-funded research project to find the answer. (Accounting Charities).(administrative-costs-to-expenditure)
July 1, 2002... I am told that a tabloid newspaper once parked some flashy cars outside the headquarters of Oxfam and took a photograph which it then published alongside an article denouncing the agency's overpaid administrators. That exercise in creative...

New officers elected at CIMA AGM. (Institute News).(Chartered Institute of Management Accountants)
July 1, 2002... Harry Byrne, the newly elected president of CIMA, focused on accountants in business at the AGM last month, when he set out his priorities for the year ahead. "CIMA's unique business perspective is pivotal to our continued success as the...

Harry Byrne FCMA FCCA president of CIMA. (Institute News).(Chartered Institute of Management Accountants)(Brief Article)
July 1, 2002... For most of his career, Harry Byrne was employed in the Guinness Ireland Group. He was appointed to the board in 1977 as finance and administrative director and became assistant managing director in 1992. Earlier appointments included a period...

Claire Ighodaro BSc (Hons) FCMA deputy president of CIMA. (Institute News).(Chartered Institute of Management Accountants)(Brief Article)
July 1, 2002... Claire Ighodaro began her career at Otis Elevators in London in 1979. She then joined BT in 1984 as a management and development accountant. As senior project manager at BT between 1988 and 1993, she led the development and implementation of...

Outgoing president's address: Bruce Epsley looks back at CIMA's progress over the year. (Institute News).(Statistical Data Included)
July 1, 2002... When I took office last June I don't think anybody could have predicted the enormous challenges that the accountancy profession would face worldwide over the next 12 months. It has been a year of change and uncertainty for the profession, and...

Chief executive's address: Charles Tilley discusses the development of CIMA in the future. (Institute News).(Charted Institute of Management Accountants)(Brief Article)
July 1, 2002... Our purpose for the next 12 months is to provide ever greater employability and career development opportunities for our members and students, through the qualification, practical experience and continuing professional development. To achieve...

Roland Kaye MSc BA (Hons) FCMA Vice-president of CIMA. (Institute News).(Chartered Institute of Management Accountants)(Brief Article)
July 1, 2002... Professor Kaye began his career as a management trainee with the English Electric Co in 1967. He subsequently held management accounting posts in major food manufacturing companies and a pharmaceutical company before becoming a lecturer at...

Data protection warning. (Institute News).(message from Chartered Institute of Management Accountants' Technical Advisory Service)(Brief Article)
July 1, 2002... Data protection is causing concern to UK members, according to CIMA's Technical Advisory Service (TAS). One member received a letter telling him that he had to register if he was holding personal information about clients on his personal...

CIMA supports ongoing Russian management accounting reform. (Institute News).(Chartered Institute of Management Accountants)(Brief Article)
July 1, 2002... The accounting reform process in Russia started in the early 1990s. Its goal is to bring the national accounting system into line with the requirements of a market economy and with international standards of financial reporting. The reform...

Institute diary.
July 1, 2002... CENTRAL LONDON AND NORTH THAMES 5 July Summer social event--golf day Refreshments on arrival followed by 18 holes of golf and a three-course evening meal Time: 1 for 2pm Venue: Bushey Golf and Country Club, High Street,...

New Srilanka division president elected.(Sudurshan Senaratne, Chartered Institute of Management Accountants)(Brief Article)(Illustration)
July 1, 2002... Sudurshan Senaratne FCMA (above) has been elected president of CIMA's Sri Lanka division. He has held various positions of responsibility in the institute, including chair of the education and training, library, and finance and secretariat...

Malaysian job opportunities.(Chartered Institute of Management Accountants Malaysia teams up with JobStreet.com)(Brief Article)
July 1, 2002... CIMA Malaysia division has teamed up with local on-line recruitment agency Job Street.com, to increase access to the latest job vacancies in the accounting and business professions to CIMA students and members in Malaysia. As part of the...

Walkers Snack Foods. (On the move).(appoints David Maynard)(Brief Article)
July 1, 2002... David Maynard ACMA has been appointed finance development director for Walkers Snack Foods. He will be responsible for the development of the finance function, including best practice development and system implementation around the business,...

Holiday airline Brittania. (On the move).(appoints Bob Hussey finance director)(Brief Article)(Illustration)
July 1, 2002... Holiday airline Brittania has appointed Bob Hussey (above) as finance director. Hussey joined the company in 1985 and has held various roles in the finance department, including five years in the more operational role of aircraft leasing...

Planview. (On the move).(Sarah Turner appointed)(Brief Article)
July 1, 2002... Sarah Turner has been appointed finance controller and quality manager of software company Planview. She will have key roles in the company's financial management and customer satisfaction processes. Turner was previously corporate finance...

Tony Chapman has been appointed group finance director and company secretary of Discovery Holdings, Discovery Foods and sister company and food manufacturer Sonora Foods. (On the move).(Brief Article)
July 1, 2002... Tony Chapman has been appointed group finance director and company secretary of Discovery Holdings, Discovery Foods and sister company and food manufacturer Sonora Foods. Chapman has worked at finance director level in the food industry for...

Eversheds. (On the move).(Gary Telford appointed)(Brief Article)
July 1, 2002... Gary Telford has been appointed tax director of business law firm Eversheds. His new role will concentrate on tax and NIC-efficient renumeration strategies; ongoing tax planning for key executives to minimise inheritance tax, capital gains tax...

Response Direct Publishing. (On the move).(David Moody promoted)(Brief Article)
July 1, 2002... David Moody has been promoted to financial director of Response Direct Publishing, a publisher of consumer card decks and response-based publications. Moody joined the company in 2001 as financial director designate.

Leeds Co-operative Society. (On the move).(Carol Leo appointed)(Brief Article)
July 1, 2002... Carol Leo (above) has been appointed general manager, finance, for Leeds Co-operative Society. Leo spent 10 years with Empire Stores Group in Bradford, latterly as financial controller. She has also been finance director of two floor covering...

LIS. (On the move).(Paul Bosson appointed)(Brief Article)
July 1, 2002... Paul Bosson has been appointed chief financial officer of LIS, a provider of supply chain execution solutions. Bosson will be responsible for all financial aspects of the business, managing the relationship with LIS' investors, bankers and...

Diary of events.
July 1, 2002... PMA's biannual conference 17-19 July, Boston, USA [he theme for this year's conference is "Performance measurement and management". Confirmed speakers include Robert Kaplan. To access papers and find out more details on submission...