Financial Management (UK) articles from July 2006

Financial Management (UK) archives from July 2006

High ethical standards are not an optional extra: they are fundamental to our professional status.(IN BUSINESS)
July 1, 2006... For a member of CIMA, ethics is not an optional extra: it is an integral part of membership. Ethics underpins how you work and how you behave--it differentiates you. Being a chartered management accountant carries with it the obligation to...

Four CIMA members and a prominent CIMA student have received awards in the Queen's birthday honours list this year.(Brief article)
July 1, 2006... Four CIMA members and a prominent CIMA student have received awards in the Queen's birthday honours list this year. HSBC's finance director, Douglas Flint FCMA, received a CBE for his services to the finance industry (see interview, page 6)....

Dave Belmont FCMA has been named company secretary of the year by the Institute of Chartered Secretaries and Administrators.(Brief article)
July 1, 2006... Dave Belmont FCMA has been named company secretary of the year by the Institute of Chartered Secretaries and Administrators. Belmont is company secretary of financial software firm CODASciSys, owner of the "extreme accounting" web site. The...

FRC calls on CIMA members to join debate on auditor competition risk.(Financial Reporting Council, Chartered Institute of Management Accountants)(Brief article)
July 1, 2006... The Financial Reporting Council (FRC) is inviting CIMA members to contribute to a discussion on how to widen the top end of the UK audit market. As part its study into audit competition and choice, the FRC is holding a stakeholders' meeting in...

Charities challenged to take lead on accountability.(FIRST IN ...)(Brief article)
July 1, 2006... Major charities should set a better example of financial accountability, according to Andrew Hind, chief executive of the Charity Commission, who told a recent CIMA conference that a quarter of the UK's higher-income charities were failing to...

Energy suppliers toil hard to drill own through embedded options.(IFRS)(Brief article)
July 1, 2006... The group finance director of gas provider Centrica has revealed some of the teething problems faced by the energy sector following the adoption of international financial reporting standards (IFRS). Phil Bentley FCMA said that IAS39 in...

Nationwide backs Powergen's decision to inshore.(FIRST IN ...)(Nationwide building society)(Brief article)
July 1, 2006... The Nationwide building society has supported energy provider Powergen's recent decision to return its call centres to the UK, although the move will almost certainly increase costs. After Powergen announced plans to close down its Indian...

Businesses are recruiting older people even before the UK's age discrimination regulations come into force.(Brief article)
July 1, 2006... Businesses are recruiting older people even before the UK's age discrimination regulations come into force. According to the Chartered Institute of Personnel and Development's annual recruitment, retention and turnover survey, 70 per cent of...

The Accounting Standards Board has issued a draft exposure setting out proposals to amend FRS17 "Retirement Benefits".
July 1, 2006... The Accounting Standards Board has issued a draft exposure setting out proposals to amend FRS17 "Retirement Benefits" and to issue a new reporting statement "Retirement Benefit--Disclosures" in order to achieve convergence between FRS17 and...

The Financial Reporting Council (FRC) has published an updated Combined Code on Corporate Governance.(Brief article)
July 1, 2006... The Financial Reporting Council (FRC) has published an updated Combined Code on Corporate Governance. This contains a small number of changes relating to remuneration committees, voting procedures and board committees' terms of reference. ...

The FRC has published a summary of developments in corporate reporting and governance over the past three months and those expected in the next quarter.
July 1, 2006... The FRC has published a summary of developments in corporate reporting and governance over the past three months and those expected in the next quarter. It covers the four themes of the FRC's work in 2006-07 and sets out its strategy, plan and...

Douglas Flint FCMA group finance director, HSBC.(Hongkong and Shanghai Banking Corporation Ltd.)(Interview)
July 1, 2006... HSBC achieved record profits in 2005. What's the secret? There can be only one measure of success: relevance to customers. So, if there is a secret, it's to make propositions that they find attractive. We've got the advantage of having a...

Logos a-gogo: the private sector's involvement in sport, the arts, charities and even community projects is increasing apace, writes Camilla Berens. But how can companies ensure that they achieve an acceptable return on their sponsorship deals?
July 1, 2006... When the players of Kettering Town FC became the first British football team to walk on to a pitch with a company brand name printed on their shirts in January 1976, little did they know that they were opening the floodgates for a...

Redefined providence: like many other firms since FRS17's arrival, the Co-operative Group felt obliged to reconsider its generous, yet burdensome, final-salary pension arrangements. The Co-op's group secretary, Nick Eyre, explains how it tried to do this without losing its socially responsible image.(company overview)(Company overview)
July 1, 2006... The Co-operative Group, founded in 1863, was one of the first employers to offer a final-salary pension to all staff. This paternalistic approach to maintaining a true employer-sponsored pension was still central to our thinking when we created...

Continuity planner: CIMA has done a lot over the years for John Coghlan. The institute's incoming president tells Ruth Prickett that he intends to repay the favour by keeping a steady hand on the helm.(Chartered Institute of Management Accountants )(dialogue with Chartered Institute of Management Accountants )(Interview)
July 1, 2006... What do you want to get out of your year as president? I don't want anything for myself. The president is the first among equals on council and it's council that approves the strategy and direction of the institute. My role is to chair...

Steps to success: how to lay strong foundations to support you all the way to CIMA membership--one brick at a time.(Chartered Institute of Management Accountants)(Brief article)
July 1, 2006... Welcome Robert Jetty, director of education, CIMA We live and work in a constantly changing world. New laws are introduced that lead to new policies, ideas and approaches. New problems arise and new solutions are sought. The world of...

Time to learn: it's never easy to combine work and study and the commonest complaint is lack of time. You can't slow down the clock, but, writes Ruth Prickett, there are ways to ensure you get maximum return on every precious minute.
July 1, 2006... When one set of exams finishes, it's natural to heave a sigh of relief and banish your books to the back of the cupboard under the stairs. But this is the best time to conduct a detailed review of how the past few months have gone and plan...

Revision hints and exam tips: now that you've found enough time, what should you do with it?
July 1, 2006... Before the exam 1. The brain recalls what you learned first and what you learned most recently in any session, so you are likely to remember more if you split longer sessions up with short breaks. 2. Tell someone about it. Once you...

Tax planning: a landmark judgment by the European Court of Justice has provided welcome guidance on the legality of VAT avoidance schemes.(TECHNICAL MATTERS)(value added tax)
July 1, 2006... Traditionally, many people have considered tax to be marginal to management accounting, but the problem with this approach is that the cost of getting tax planning wrong can often wipe out your company's profits. There aren't many firms that...

The Business General.(Book review)
July 1, 2006... THE BUSINESS GENERAL Authors: Deborah Toms and Richard Barrons Publisher: Vermillion Price: 10.99 [pounds sterling] ISBN: 009190692X "Oh, no," I hear you groan. "Not another book on how the military can teach business people to run things...

Accounting in a Nutshell, 2d ed.(Book review)
July 1, 2006... ACCOUNTING IN A NUTSHELL (SECOND EDITION) Author: Janet Walker Publisher: Elsevier/CIMA Publishing Price: 19.99 [pounds sterling] ISBN: 0 7506 6401 0 The art of writing for a non-specialist audience lies in simplifying without...

All You Need to Know About Being a Pension Fund Trustee.(Brief article)(Book review)
July 1, 2006... ALL YOU NEED TO KNOW ABOUT BEING A PENSION FUND TRUSTEE Author: Andrew Freeman Publisher: Longtail Publishing Price: 24.95 [pounds sterling] ISBN: 0955218608 Andrew Freeman has been a financial journalist for two decades including 13 years...

Who's counting? A Lean Accounting Business Novel.(Brief article)(Book review)
July 1, 2006... WHO'S COUNTING? A LEAN ACCOUNTING BUSINESS NOVEL Author: Jerrold Solomon Publisher: WCM Associates Price: 19.50 [pounds sterling] ISBN: 0966290623 It seems strange to be recommending a novel that reads like a cheesy melodrama to the...

Health, Trade And Human Rights.(Brief article)(Book review)
July 1, 2006... HEALTH, TRADE AND HUMAN RIGHTS Author: Theodore MacDonald Publisher: Radcliffe Publishing Price: 11.99 [pounds sterling] ISBN: 1 84619 050 9 Health, Trade and Human Rights conveys the core issue of trade inequality between the first and...

Inter-organisational cost management: if you're prepared to work more collaboratively with your suppliers, the IOCM approach can potentially improve your firm's profitability.(TECHNICAL MATTERS)
July 1, 2006... No organisation is an island. All operate in networks of suppliers, customers, alliance partners, financiers and official bodies. Historically, our model of cost management in such networks has been one of arms-length transactions: we buy from...

Value creation: Cora Lynn Heimer Rathbone reports on a project designed to help France Telecom generate competitive advantage by developing its people's intrapreneurship skills.(TECHNICAL MATTERS)
July 1, 2006... Globalisation, commoditisation, increasing regulation and shortening product/service life-cycles are squeezing the margins of those former state-owned monopolies that are now responsible for maintaining the infrastructure used by newer, more...

Michael Preston, project account BAE Systems.(STUDENT ONE2ONE)(talk notes)(Interview)
July 1, 2006... How does it feel to be part of a team designing aircraft carriers for the Royal Navy? I'm in my fourth year of BAE Systems' finance leader development programme (FLDP). In my first year I worked with naval ships in Glasgow. For the second...

Management Accounting--Financial Strategy: one of the examiners for P9 analyses the issues raised by an exam question on the use of fixed forward and option contracts in currency risk management.(PAPER P9)
July 1, 2006... Part b of question 4 in last November's Management Accounting--Financial Strategy exam involved a company that was planning to hedge its currency risk using either a fixed forward contract or a European currency option. Candidates were required...

Exam notice.
July 1, 2006... Visit www.cimaglobal.com regularly for updates. * May 2006 exam results You can register online to receive your results via e-mail. if you wish to receive them this way, you'll need to select this option by July 20. To do it, log on to...

Honorary officers elected.(INSTITUTE UPDATE)(elections of presidents at Chartered Institute of Management Accountants)
July 1, 2006... JOHN COGHLAN FCMA, PRESIDENT John Coghlan worked for Jefferson Smurfit Group for 30 years. Before this, he held financial roles at J&C McGloughlin, Unidare and Chrysler Ireland. He joined Smurfit in 1971, became an operating subsidiary...

Presidential engagements.(INSTITUTE UPDATE)(Calendar)
July 1, 2006... PRESIDENTIAL ENGAGEMENTS July I CIMA council meeting July 11/18/20 Buckingham Palace (tbc) July 21 Appointments committee Sept 2 Area 3 annual student conference Sept 6 Sir Ian Morrow's memorial...

Ireland shifts audit exemption.(INSTITUTE UPDATE)(Brief article)
July 1, 2006... Ireland's minister for trade and commerce, Michael Ahem, has confirmed his intention to introduce a new audit exemption regime in legislation planned under his departmental remit. This will significantly increase the audit exemption threshold,...

Beware of FRC/AIDB impostors.(INSTITUTE UPDATE)
July 1, 2006... Callers pretending to represent the Financial Reporting Council or its Accountancy Investigation & Discipline Board have recently contacted accounting practices requesting information about their employees. If this happens to you, please...

Malaysia conference proves big draw.(INSTITUTE UPDATE)(Brief article)(Conference notes)
July 1, 2006... More than 350 people attended the CIMA management accounting conference 2006, organised by the CIMA Malaysia division in Kuala Lumpur. Ian Christison, the institute's president, was the guest of honour. He opened the conference and...

Enterprise governance video.(INSTITUTE UPDATE)
July 1, 2006... If you want to find out more about enterprise governance and obtain more information on the CIMA Strategic Scorecard, log on to the "My CIMA" part of the institute's web site to view a new video presentation and slide-show. The 20-minute...

Training conference now booking.(INSTITUTE UPDATE)
July 1, 2006... The 2006 CIMA training conference brings together key employers from a range of industries to share best practice in helping their CIMA students to qualify. It offers the training knowledge and support necessary for all those cultivating future...

Membership assessment day winner.(INSTITUTE UPDATE)(Sonya Mulligan)(Brief article)
July 1, 2006... Sonya Mulligan triumphed in the 2006 CIMA Republic of Ireland membership assessment day competition, held by Hays Accountancy & Finance, Dublin. She won a weekend at the Slieve Russell Hotel Golf & Country Club in County Cavan.

An example to us all: Michael Bromwich, CIMA professor of accounting and financial management at the LSE, explains why every member of the institute can learn from Sir Ian Morrow's career.(INSTITUTE UPDATE)(In memoriam)
July 1, 2006... The career of Ian Thomas Morrow, who died on April 19, 2006, aged 93, exemplifies what can be achieved by a well-trained, ambitious and determined management accountant willing to take risks. Morrow was a pathfinder for CIMA members seeking to...

Present company excepted.(Letters)(Letter to the editor)
July 1, 2006... Setting aside for a moment the uncommon generosity of Victor Sheahan's 193 closest friends (can you introduce them to me, please?), there's a fatal flaw in his calculation of the optimal number of wedding guests (Study notes, May). The...

Value addition.(Letters)(Letter to the editor)
July 1, 2006... Victor Sheahan, Malcolm Howard and Colin Heath (Letters, June) suggested useful techniques to understand the costs and drivers at Sheahan's wedding. But they stopped just when they were getting to the interesting part. What they need to do next...

Don't wait for Utopia.(Letters)(Letter to the editor)
July 1, 2006... The Management Accounting--Performance Evaluation article (Study notes, May) suggests that it would be wise to retain sequential accounting systems that are more expensive to run until we live in a perfect world. This is exactly the sort of...

How long is a piece of string?(Letters)(Letter to the editor)
July 1, 2006... Your performance measurement article (May 2006) promoting a dictionary of measures highlighted a number of interesting ideas that can help organisations to manage their performance more efficiently. But it did neglect to identify one of the key...

Expo or expose?(Letters)(Letter to the editor)
July 1, 2006... Your feature on the 2010 World Expo in Shanghai ("Eastern exposure", May) made no mention of the serious human rights issues that China faces. Accountants must look at the commercial, economic and financial impact of progress and growth, but is...

Diary.(Calendar)
July 1, 2006... Visit www.cimaglobal.com/events for updates and a full list of events (all branch events are free unless otherwise stated). To book places, get in touch with the contact for the relevant area (see panels). To book on a CIMA Biz.Net event,...

Far from the adding crowd: work-life balance is on the UK political agenda and businesses are seeing benefits from flexible working. Camilla Berens asks what this means for CIMA members.(JOBS & CAREERS)(Chartered Institute of Management Accountants )
July 1, 2006... David Cameron's recent call for a better work-life balance must have struck a chord with many people. But, whether you're the Opposition leader or simply a middle manager with itchy feet, the problem is the same: it's easier to talk about a...

Lal Balkaran FCMA.(ON THE MOVE)
July 1, 2006... Lal Balkaran FCMA has been granted honorary membership of the Toronto chapter of the Institute of Internal Auditors for his outstanding contribution to the profession.

Tony Holmes FCMA.(Axair Climate appointed)(Brief article)
July 1, 2006... Tony Holmes FCMA has joined Axair Climate, a supplier of air-conditioning systems, as finance director. For the past eight and a half years he has worked for Welconstruct Group, having previously been with Waterford Wedgwood.

Zoological Society.(Michael Russell appointed )(Brief article)
July 1, 2006... Michael Russell FCMA has been appointed finance director of the Zoological Society of London, a wildlife conservation charity. He previously held a number of financial and general management posts at scientific systems manufacturer Oxford...

Richard Wilson FCMA.(ON THE MOVE)(Fellow Chartered Management Accountant )(Brief article)
July 1, 2006... Richard Wilson FCMA, emeritus professor of business administration and financial management at Loughborough University Business School, has received a lifetime achievement award from the British Accounting Association for his work in the field...

Associate Parliamentary Group.(Sarah McCarthy-Fry appointed)(Brief article)
July 1, 2006... Sarah McCarthy-Fry ACMA, MP for Portsmouth North, has been appointed secretary of the Associate Parliamentary Group on Business, Finance and Accountancy. The aim of this newly formed body is to provide a mechanism through which Parliament can...

Secret diary: Piers Pommeroy has clearly been working hard to develop his "optimistic leadership" skills. Will he convert a good week into a good month, or will the natural order of things be restored?
July 1, 2006... Week 1 While it may seem improbable to anyone who's taken more than a passing interest in the life and times of Piers Pommeroy, I do sometimes have a good week. My definition of a good week--any seven consecutive days in which I face no...