Financial Management (UK) articles from June 2003

Financial Management (UK) archives from June 2003

Editorial comment.(discussion of content in this issue)(Editorial)
June 1, 2003... The UK government has announced its intention to publish plans for a new offence of "corporate manslaughter" to be considered in cases where people die as a result of negligence on the part of a company. This has led to debates about whether...

Ailing markets face termination. (News: round Up).(Brief Article)
June 1, 2003... A quarter of the world's new capital markets are set to close, having failed to attract new companies, according to research by Grant Thornton. At the end of last year 44 new markets--those appealing to younger, high-growth companies--were in...

Firms unready for every IAS issue. (News: round Up).(Brief Article)
June 1, 2003... Businesses are failing to consider the non-financial effects of international accounting standards OAS), according to David Smailes, partner at PricewaterhouseCoopers. Speaking at a seminar organised by software developer SunSystems, he said:...

Higgs to address CIMA conference: this year's event will focus on shareholder value issues. (CIMA Conference And Awards).
June 1, 2003... High-profile speakers such as Derek Higgs, author of the controversial report on the role of non-executive directors, and Sir Brian Pitman, former chairman of Lloyds TSB, are in the line-up for CIMA's annual conference in London on 12-13...

Leaders fly into danger zone: Ruth Prickett reports from the Institute of Directors' centenary convention. (Risk Management).
June 1, 2003... Managing brands and coping with risk are the main concerns for today's captains of industry, according to speakers at the Institute of Directors' annual convention in London last month. "Traditionally, a company's reputation was driven by...

Amman with a longer-term plan. (News: round-up).(Brief Article)
June 1, 2003... Dougal Freeman (pictured), a CIMA member working in Jordan for the charity Care International, has extended his three-month contract there as the result of an increase in donations after the Iraqi war. Freeman went to Amman in February to...

FRC reviews Higgs proposals. (News: round-up).(Brief Article)
June 1, 2003... The implementation of the new code of corporate governance has been delayed by the Financial Reporting Council (FRC), which is attempting to water down some of its planned measures. The proposals of Derek Higgs's report on non-executive...

UK business gets behind euro: Cathy Hayward reports on a lively debate on the merits of the single currency. (Single European Currency).
June 1, 2003... If the UK were to join the euro, it would be as if 12 neighbours were sharing one bank account, argued John Redwood MP at a conference organised by the campaign group Britain in Europe. " We don't share a bank account with our next-door...

Rugby HQ tries further MS modules. (IT news: round-up).(Brief Article)
June 1, 2003... The benefits of a Microsoft Great Plains financial solution have led the Rugby Football Union (RFU), English rugby's governing body, to purchase further modules. The implementation of MS Great Plains 6 (with cash book, fixed assets and...

Basel II Accord to transform banks' credit risk processes. (IT news: round-up).(Brief Article)
June 1, 2003... Banks that haven't started preparing to meet the requirements of the Basel II Accord, which are to be implemented in 2007, risk falling foul of increased regulation on data. Marcel Haenen, senior consultant, business intelligence, at Cap...

Software firms should expect little growth in licence sales and more price cuts, according to Simon Andrews, research analyst at Lehman Brothers. (Technology News In Brief).(Brief Article)
June 1, 2003... Software firms should expect little growth in licence sales and more price cuts, according to Simon Andrews, research analyst at Lehman Brothers. He told delegates at a conference held by software developer Cognos that software and hardware...

One-third of FDs in small and medium-sized enterprises make their firm's IT decisions, according to research by Microsoft Business Solutions (MBS). (Technology News In Brief).(Brief Article)
June 1, 2003... One-third of FDs in small and medium-sized enterprises make their firm's IT decisions, according to research by Microsoft Business Solutions (MBS). And almost two-thirds plan to buy a business application this year--currently 80 per cent rely...

Presidential engagements. (Institute News).(Brief Article)
June 1, 2003... 5 June CIMA Roadshow, London 14 June AGM, London

Annual review. (Institute News).(web site where the 2002 report is posted)(Brief Article)
June 1, 2003... The annual review and financial statements 2002 are available now. All members should have received copies in the post. However, if not, they can be downloaded at www.cimaglobal. com/main/about/profile/literature/

2003 Mips conference. (Institute News).(Members in practice; meshed briefs)(Brief Article)
June 1, 2003... This year's Members in practice (Mips) conference focuses on helping you to release the hidden potential of your business. The conference will take place on 13-14 June at Heythrop Park, Oxfordshire, and will include a black-tie gala dinner on...

CIMA's CEO addresses US summit. (Institute News).(UK companies and Sarbanes-Oxley; meshed brief)
June 1, 2003... Charles Tilley, CIMA's chief executive, appeared at the Financial Executives Summit in Florida with Lou Dobbs, an anchor for CNN. Speaking at a panel discussion on corporate governance and business risks, Tilley discussed the impact of the...

Human interests. (Letters).(Letter to the Editor)
June 1, 2003... In your April issue on the euro debate, you say that "it must always come down to whether the joining the single currency will be good for UK business". This is a saddening comment. Corporate social responsibility and democracy mean that the...

Wings of desire. (Letters).(Letter to the Editor)
June 1, 2003... In Ron Matthews' excellent article in May's FM, I couldn't help noticing the 20 per cent addition to the cost that transport may have made to his calculations. He seems to have been misled by the hysteria surrounding the fuel strike into...

Colleagues reunited. (Letters).(Letter to the Editor)
June 1, 2003... One of the less publicised features of the Friends Reunited website is the facility to enter your details by employer. As a retired member who has spent time tracking down former colleagues in recent years, this facility is potentially as...

Back to basics. (Letters).(Letter to the Editor)
June 1, 2003... The main problem with the advent of computers and the internet is that firms now expect managers to answer telephone calls and e-mail and do the faxing and photocopying. Consequently, the boss is too busy to respond to everybody's needs. ...

Searching questions. (Letters).(Letter to the Editor)
June 1, 2003... I left my employment with HM Stationery Office in Norwich in 1997 at the age of 49, and have relished not having to worry about managing a privatised civil service finance department. Although I could have returned to commuting into Norwich, I...

Out for the count. (Letters).(Letter to the Editor)
June 1, 2003... With reference to my letter in the May issue regarding the number of regulations spawned by the EC, the figure of 180,000 related to the count so far. I am concerned in case I gave the impression that this quantity related solely to 2002! ...

Continuity issues. (Letters).(Letter to the Editor)
June 1, 2003... I hope I'm not the only reader of "What's the worst that could happen?" (May) to feel that its references to the World Trade Center were in appalling taste. I am sure that the loved ones of the 600 IT staff would have preferred that seconds...

An insensitive issue: the Court of Appeal has issued detailed advice for tribunals to follow when assessing damages for injury to feelings in cases of sex discrimination. Sue Nickson explains the new guidelines. (Legal).
June 1, 2003... The Court of Appeal's decision in the case of Vento v Chief Constable of West Yorkshire Police is set to stand as a leading authority on the assessment of compensation for injury to feelings in cases of sex discrimination. Vento was...

The search for prophet ability: accountants must start giving line managers the information they need to make decisions in real time, writes Richard Barrett. He outlines new approaches that can help them to achieve this. (Technology).
June 1, 2003... Given that financial instability is a fact of life and business success depends on our ability to stay ahead of the game, isn't it strange that we're still using budgeting methods that are rooted in the early 20th century? Budgeting was...

Auditory trail: deafness makes it hard for a large proportion of the population to interact effectively as customers or employees. Ken Gorf discusses ways to turn an imminent legal onus into a business advantage. (People Management).
June 1, 2003... There are nearly nine million deaf and hard-of-hearing people in the UK. That's about one in seven of the country's entire population. More than four million of them are of employable age, and nearly all of them are consumers of goods and...

CARTESIS[R]: with IAS and the ongoing corporate governance debate, the one thing the future is not likely to be is dull. Jonny Cheetham answers your queries about the changing role of finance. (Questions & Answers).
June 1, 2003... Why should I now be thinking about my group financial systems in relation to international accounting standards (IAS)? The EU has adopted a regulation that requires all listed European companies to prepare their consolidated accounts for...

The state they're in: management accounting in the third world cannot be fully effective until all parts of the socioeconomic jigsaw fit together, according to Trevor Hopper, Mathew Tsamenyi, Shahzad Uddin and Danture Wickramasinghe.
June 1, 2003... The state they're in: management accounting in the third world cannot be fully effective until all parts of the socioeconomic jigsaw fit together, according to Trevor Hopper, Mathew Tsamenyi, Shahzad Uddin and Danture Wickramasinghe. They...

Doubled indemnity: the costs of employers' liability insurance are spiralling in the UK as 'compensation culture' takes hold in this country. Well over 200,000 British firms are breaking the law because they can't afford the requisite cover. Cathy Hayward reports on how the government, businesses and the insurance industry are tackling the problem. (Insurance).
June 1, 2003... After knocking back cocktails in a Soho bar for five hours, a twentysomething female professional wearing three-inch heels falls down the stairs on her way out and pulls a tendon in her ankle. Will she get a cab home, bandage up her foot and...

Home guard: defence offsets are arrangements between a national government and a foreign arms supplier to direct some benefits of the contract back into the purchasing country as a condition of sale. Ron Matthews analyses the UK government's version of offsetting, 'industrial participation', which is designed to protect the domestic defence industry. (Defence Procurement).
June 1, 2003... The disintegration of the Soviet Union in 1991 ended the cold war and sparked off unparalleled changes in the international defence industry. All countries, save for bankrupt North Korea and Cuba, are now fervent disciples of Adam Smith, and...

Fresh fields: building a reliable and thorough spreadsheet-based model needn't be a painful process--as long as you stick to basic principles. Stephen Aldridge offers his step-by-step guide to better financial modelling. (How to: financial modelling).
June 1, 2003... Beyond a simple discounted cash flow analysis, most accountants won't have had sufficient training to build spreadsheet models that can be applied to the complex business decisions managers regularly face. Many studies on the subject have...

Eire's apparent? To what extent are CFOs involved in e-business implementations--and at what level? In a CIMA-backed study, David O'Donnell, Philip O'Regan, Tom Kennedy, Peter Cleary and Nick Bontis examine firms in Ireland's information and communications technology sector to determine whether their CFOs are making the most of the opportunity. (E-commerce).
June 1, 2003... The CFO's role has been the subject of considerable speculation in recent years. Many commentators argue that those who have the skills of a good CFO are equipped to guide their firms through many of the financial, governance and strategic...

Cap in hand: the proportion of institutional funds invested in smaller quoted companies has declined dramatically over the past three years. Several of these businesses are being starved of investment and the government has been slow to come to their assistance. Peter Bartram traces the roots of the problem and explains how some of the more enterprising organisations are tackling it. (Small-Cap Investments).
June 1, 2003... Where has all the money gone? It's a plaintive question, and it's being asked in not a few City boardrooms. The heady bull market of the late 1990s is long gone and it's possible that several more bear years await. That may not be a complete...

Goodwill shunting: goodwill may be classed as an asset, but this status is debatable. David Burl explores the nature of goodwill and discusses possible new approaches to its valuation and revaluation. (Goodwill).
June 1, 2003... Although goodwill lies in the intangible fixed assets section of the balance sheet under UK Gaap, this classification is often disputed, and with good reason. The recognition basis for goodwill--in essence, that it's purchased--is also...

Director inquiries: the newspapers would have us believe that directors earn huge bonuses for playing golf. Cathy Hayward finds out what they really do, and explains why financial managers should be indispensable to the board. (Boards).
June 1, 2003... Directors earn vast salaries, bonuses and pensions, not to mention juicy share options, for doing little more than attending the odd board meeting and swanning around on their expense accounts. Or so it can seem from the finance department's...

Turning neds: it's an ill wind that blows nobody any good. David Allen explains what CIMA members should do to take advantages of opportunities opened up by the current focus on corporate governance. (Business Neds).(effectiveness of non-executive directors )
June 1, 2003... A number of business failures in the past couple of years have been notable not only for their spectacular scale and speed, but also for the fact that they came as a surprise to shareholders, analysts and commentators alike. These failures...

Package deal: as fat-cat pay hits the headlines again, Charles Town analyses a company report and asks what improved remuneration disclosure will mean for the role of non-executive directors. (Business Remuneration Committees).
June 1, 2003... A few days ago I received the full report and accounts of a major company, which has significant interests outside the UK. Conscious of current concerns over corporate governance and the enhanced burdens anticipated for non-executive directors...

Team payers: football is a multi-billion-dollar global industry, but, explains Paul Thompson, the way in which the English Premiership is accounted for is influencing teams' choice of, and spending on, players. (Business Football).
June 1, 2003... The funny old game of football has become the largest spectator sport on the planet. Millions of people tuned in to see the world's top teams do battle in the World Cup last year. Although an Italian club will take top honours in Europe this...

Institute diary.(Calendar)
June 1, 2003... Check the CIMA website and bookmark www.cimaglobal. com/main/about/local/europe for up-to-date event information in your area CENTRAL LONDON AND NORTH THAMES See you r Network News for further information 18 June Website...

Professional Oversight Board. (On the move).(Brief Article)
June 1, 2003... Sir John Bourn (above) has been appointed as the chairman of the Professional Oversight Board. He is currently chairman of the Review Board, which is part of the Accountancy Foundation. The Professional Oversight Board is the successor to the...

Christian Salvesen. (On the move).(Brief Article)
June 1, 2003... Caroline Edwards ACMA has been appointed group financial systems manager of Christian Salvesen. She will manage the final implementation phase of Coda eFinancials and Coda Intelligence, and will subsequently be responsible for developing and...

Dyson. (On the move).(Brief Article)
June 1, 2003... Louise Hawkes ACMA has joined Dyson as UK finance manager. She will head a team of three responsible for the commercial evaluation and analysis of Dyson's performance in the UK market. Hawkes has previously worked for Whitbread, Andersen...

Ballet Makers Europe. (On the move).(Brief Article)
June 1, 2003... Graeme Gibbon ACMA has been appointed operations director for Ballet Makers Europe, the European headquarters of US-based ballet and dance equipment supplier Capezio, which is based in Norwich.

Charity Commission. (On the move).(Brief Article)
June 1, 2003... Jon Thorne has been appointed head of financial regulation at the Charity Commission. Thorne originally trained with a firm of chartered accountants in Sheffield and joined the commission in 1992. During this time he has provided financial...

EMC Management Colsultants. (On the move).(Brief Article)
June 1, 2003... Terry Rainback (above) has joined EMC Management Consultants as a specialist in the development and provision of corporate finance solutions. Rainback has spent much of his career working with senior managers and professionals at major UK and...

ISIS Equity Partners. (On the move).(Brief Article)
June 1, 2003... Andy Gregory has been appointed investment director at ISIS Equity Partners. Gregory, whose background includes positions in corporate finance, acquisition finance, private equity and as financial director on a management buy-out, will be part...

ING Barings. (On the move).(Shakeshaft, John)(Brief Article)
June 1, 2003... John Shakeshaft has joined Cardona Lloyd to head its corporate finance business. Shakeshaft was managing director at ING Barings and a member of its management committee before joining Lazard as a partner.

Hacker Young. (On the move).(Brief Article)
June 1, 2003... Clive Maudsley (above) has joined accountancy firm Hacker Young as audit partner. He previously worked at Baker Tilly. Other appointments at Hacker Young include: Colin Jones, as audit manager, joining from BDO Stoy Hayward; Matthew Anderson,...

Bibby Financial Services. (On the move).(Brief Article)
June 1, 2003... Bibby Financial Services has promoted four new directors. Jonathan Fish, Ian Burman, Andrew Meadwell and Stewart Chesters.

Diary of events.(Calendar)
June 1, 2003... Engineering project management forum 4 June, London Contact: swprojects@blueyonder. co.uk or www.swprojects.co.uk Fourth Asian Pacific interdiscplinary research in accounting conference 4-6 July, Singapore Contact: Adelene Ang at...