Financial Management (UK) articles from May 2002

Financial Management (UK) archives from May 2002

Editor's letter.
May 1, 2002... A few years ago an enterprising publisher called Martin Leach set up a company in his own name and launched a magazine called Human Resources. It took the personnel profession by storm and soon became extremely successful. The publication held...

SIC32: intangible assets--website costs. (Technical Update).
May 1, 2002... The international financial reporting interpretations committee (formerly the standing interpretations committee) of the International Accounting Standards Board has issued an interpretation on the treatment of accounting for website costs...

IAS24: related-party disclosures. (Technical Update).
May 1, 2002... The International Accounting Standards Board has reviewed its decision to provide an exemption from certain disclosures under IAS24 in the individual financial statements of entities included in a parent company's consolidated statements. Some...

Something better to declare. (Technical Update).
May 1, 2002... HM Customs & Excise has announced new, less confrontational procedures for investigating civil cases of VAT evasion. The changes include replacing taped formal interviews with meetings; lower penalties for respondents who co-operate; no...

CIMA backs code for non-execs: the institute has put a range of proposals to the Treasury. (Corporate Governance).
May 1, 2002... High-quality input from non-executive directors is central to good corporate governance, CIMA told the Treasury committee inquiry into the financial regulation of public limited companies in the UK last month. The institute recommended that...

Hectic year in store for standard-setting body. (Corporate Governance).
May 1, 2002... Financial managers must prepare for big changes to accounting standards over the coming months, Mary Keegan, chairman of the Accounting Standards Board (ASB), warned delegates at the Association of Corporate Treasurers' annual conference last...

Anti-FRS17 lobby on warpath: the standard has exposed massive deficits in funding. (Pensions).
May 1, 2002... Calls for changes to FRS17, the new pension accounting standard, have intensified following the publication of a report revealing that half of the FTSE 100 firms have reported fund shortfalls totalling 4 billion [pounds sterling]. BP and...

Budget will hit UK plc for 8.3 billion [pounds sterling] in tax and admin costs. (Pensions).
May 1, 2002... The increases in national insurance contributions and employment costs announced in the latest Budget will fail to create a more competitive environment, writes David Hoskins, tax partner at Smith & Williamson. British business will be worse...

Whitehall farce extends its run. (Technical Update).
May 1, 2002... Government departments continued to face serious problems implementing resource accounting and budgeting last year, according to a report from the National Audit Office (NAO). Only 15 per cent of the 52 departmental resource accounts were...

PAYE as you go on-line. (Technical Update).
May 1, 2002... The Inland Revenue is calling on employers to file their PAYE end-of-year returns over the internet in order to meet its 19 May deadline. The Revenue launched its on-line service, which allows employers to send forms such as P35s and P11Ds over...

Options open for CIMA members. (Technical Update).
May 1, 2002... CIMA's technical department is undertaking research into the practical application of real options analysis. If there are members or students who have expertise in this area who would like to contribute, please contact Richard Mallett,...

Back to the drawing board. (Technical Update).
May 1, 2002... More than 95 per cent of employees believe that a better designed and decorated workplace would have a positive effect on their performance, according to a survey by the Royal Institute of British Architects (Riba). "The physical environment...

Regulator gets web presence. (Technical Update).
May 1, 2002... The Accountancy Foundation, the new independent regulator of the profession in the UK and the Republic of Ireland, has launched its website. Visitors to www.accountancyfoundation.com can download its publications, including the recent report...

On-line learning breakthrough. (Technical Update).
May 1, 2002... CIMA has launched CIMA Intuition, an e-learning package providing tailored on-line and CD-Rom resources for finance professionals and their non-finance colleagues. Overhead Cost Control, Risk in Investment Appraisal, Performance Management,...

Top execs forfeit bonus pay; but share options are more than making up for the loss. (Reward).
May 1, 2002... Britain's economic downturn forced many senior directors to go without their annual bonuses last year, according to research by Mercer Human Resource Consulting. A sample of the first 100 big companies to file proxy statements before their...

How to manage downsizing. (News Round-Up).
May 1, 2002... Only one-third of companies that cut a significant number of jobs manage to achieve an increase in overall profitability, while almost 90 per cent see a reduction in employee morale and productivity. Firms can avoid these pitfalls by taking the...

Track records. (Letters).
May 1, 2002... I was very interested in the articles on Railtrack in April's FM, but I have a couple of comments. The graph on page 22 purports to show the relationship between Railtrack's share price and the FTSE 100, but it fails to do so properly because...

Open-door policy. (Letters).
May 1, 2002... The logic in B Ghosh's letter in the April issue is flawed. Ghosh believes that a graduate-only profession will prevent another Enron-type scandal. This is strange, since the Enron scandal happened in the US, where accountancy is a...

Rights issues. (Letters).
May 1, 2002... Hats off to Katherine Grimshaw and her team for securing associate membership status with the CPA body for CIMA members in the US. This is a giant leap forward. Ideally, CIMA members should receive full membership status after passing...

Keep our distance. (Letters).
May 1, 2002... I agree with readers' comments on the euro. CIMA should present the facts and leave the choice to UK residents when a referendum is held. It is bad enough that the government spends taxpayers' money on promoting full entry into the EU. At my...

Been there, done that. (Letters).
May 1, 2002... I take issue with Lee Parker's article ("Advance and be recognised", April). Telling management accountants to "move from a financial information support role to become a strategic manager" shows an alarming lack of insight into their work. ...

Suitably succinct or abridged too far?
May 1, 2002... Book: The Handbook of Performance Measurement Author: Mike Bourne Publisher: Gee Publishing ISBN: 1 86089 9409 (1 86089 8246 with CD) Price: 234.95 [pounds sterling] (287.70 [pounds sterling] with CD) This is a typical...

In search of a predictable ending.
May 1, 2002... Book: How to Forecast--A Guide for Business Author: James Morrell Publisher: Gower ISBN: 0 566 083 63 9 (hardback) Price: 55 [pounds sterling] The late James Morrell is renowned in the field of financial forecasting. One...

The Risk Factor.
May 1, 2002... Authors: Terry Carroll, Mark Webb, Mark Griffith Publisher: Take That ISBN: 1 873668 37 6 Price: 39.50 [pounds sterling] Since the publication of the Turnbull report in 1999, many FDs have become responsible not only for...

Double indemnity: one of the main problems with trading across borders in Europe is the likelihood that your firm will be taxed both at home and abroad. But there is a way around it. (Tax).
May 1, 2002... While the UK is not yet part of the eurozone, it's still a fully paid-up member of the European Union. British businesses consequently have unprecedented opportunities to trade from the Baltic to the Bosphorus now that so many barriers to...

Upwardly mobile: forecasts for economic growth have been revised upwards once again. David Ross warns that, while this is good news for most national economies, it could be overoptimistic. (Economics).
May 1, 2002... If a week is a long time in politics, six months is a lifetime for economic forecasters. After 11 September they rushed to revise their forecasts for 2002 downwards--many predicted that the world's leading economies would experience recession...

Touchstone picture: the `long-range plan' has been rendered obsolete by the complexities of commercial change. David Allen explains the finer points of the concept that has replaced it: `the business model'. (Management).
May 1, 2002... Back in the days when the business environment was much less volatile than it is today, the predominant level of control was tactical--ie, concerned with decisions about how to do what the company was already doing. The preparation of budgets...

Electronic cognition: many early adopters of e-learning have got so excited about the new technology that they have forgotten the basics of learning. Alan Waterfield recommends a more balanced approach. (People Management).
May 1, 2002... E-learning is yet another market that, according to the usual suspects, is destined to grow into a multi-billion-pound industry in the next three years. It's the hottest topic in training, and its proponents say that it will revolutionise how...

Scam busters: the sheer embarrassment of falling victim to a swindle makes companies reluctant to report the crime, while the perpetrator--nearly always an employee--often evades justice to reoffend elsewhere. Peter Bartram charts the growth of commercial fraud and describes the telltale signs of foul play to look out for. (Cover Feature Fraud).
May 1, 2002... They do everything bigger in Texas--even the bankruptcies. Enron's crash has demonstrated to the markets that size is no impediment to failure. And, more significantly, it shows that the presence of hotshot auditors is no guarantee that the...

Efficiency driver: Unilever is proud of its long heritage, but its finance director is determined that it learns from history and moves with the times--even if that might mean dropping established brands. Rudy Markham tells Cathy Hayward about the group's plans to expand by trimming the fat. (Interview Rudy Markham).
May 1, 2002... Walk in through the revolving doors of Unilever House at Blackfriars Bridge, London, and you could be forgiven for thinking you're checking into an art deco hotel. The building's fixtures and fittings evoke the Roaring Twenties, when the...

Prism reform: during an economic downturn you might expect businesses to focus on pure financial performance measurement as they try to cut costs, but nothing could be further from what's needed. Chris Adams and Andy Neely explain how the Performance Prism can help managers to stay focused and deliver savings without compromising on quality in crucial areas. (Finance Performance Measurement).
May 1, 2002... Performance measurement in a downturn is simple: all that matters is limiting the damage to your company's market capitalisation and dividend payments. Batten down the hatches and forget balanced scorecards--after all, this is no time for...

Voyage of discovery: for all its professed benefits, activity-based costing isn't an easy system to implement. Selvan Naidoo draws on his experiences of establishing ABC in a shipping company to describe the key decisions to be made--and the major pitfalls to be avoided. (How To Activity-Based Costing).
May 1, 2002... Activity-based costing (ABC) is often viewed as a daunting task, perhaps quite rightly so. The processes of data accumulation and cleansing demand a lot of effort, but following a few basic principles from the start can help to sharpen your...

Decent exposure: has America's much-scrutinised new legislation on the disclosure of financial data levelled the playing field for investors, or has it simply made companies less willing to divulge key information? Andrew Lymer and Amir Allam examine the official review of how the regulation worked in its first year to uncover the truth. (Finance Reporting).
May 1, 2002... Few reporting regulations have come under more scrutiny in such a short period than Regulation Fair Disclosure (Reg FD). The legislation, which took effect in the US in October 2000, was a bold attempt by the regulators to eliminate the unfair...

Bond bombshell: Boots' remarkable move last year to shift its pension investments exclusively into bonds was prompted by several factors, not least of which was the advent of FRS17. Fiona Ross considers whether the company's controversial decision to turn its back on equities will prove to be the right one. (Finance Investment).
May 1, 2002... The disappointing performance and volatility of stock markets over the past couple of years have given investors plenty of food for thought. The equity content of many institutional pension funds has dragged overall returns down significantly,...

Co-options to council. (Institute News).
May 1, 2002... The following members have been co-opted to serve on council for two years from the close of the AGM on Saturday 8 June 2002.

Andrew Paul Miskin FCMA (44). (Institute News).
May 1, 2002... After reading engineering at Cambridge University, Andrew Miskin became an industrial engineer at Michelin Tyres. In 1981 he joined Esso Petroleum and was made business analysis manager in 1987. He took his CIMA exams and won a prize in IT at...

Major Simon Keith Parkes FCMA AGC (SPS) (32). (Institute News).
May 1, 2002... Simon Parkes is on the members' services committee and is secretary of the Central Government Branch. He was commissioned into the administrative branch of the RAF in December 1989. His training at RAF Hereford was followed by financial roles...

New ways to build on past progress. (Institute News).
May 1, 2002... Change was a constant theme throughout a long council meeting on 22 March, in which members debated a wide range of issues crucial to the institute's progress. This was, perhaps, apt in a session that was the last to be chaired by the current...

Change to FRS distribution policy. (Institute News).
May 1, 2002... The institute has for some years provided free copies of new financial reporting standards (FRSs) to members and students on issue and on request, for a period of six months after issue. Each time the Accounting Standards Board issues a new...

Institute diary.
May 1, 2002... CENTRAL LONDON AND NORTH THAMES Please note that the Chelmsford branch AGM has been postponed until September 15 May Retired members' lunch Time: 12.30pm Venue: Novotel, Stevenage Branches: North London and Beds & Luton...

British Vita. (On The Move).
May 1, 2002... Jez Maiden FCMA (left) has joined British Vita as group finance director. Previously director of finance at the Britannia Building Society and group finance director at Hickson International, Maiden has also worked for PricewaterhouseCoopers...

ServiceTec International Group. (On The Move).
May 1, 2002... Lynne Harrison FCMA has been appointed group finance director of ServiceTec International Group. Harrison joined the company in January 1999 as financial controller of its Airport Services Division and was promoted to group financial controller...

Energy Technique. (On The Move).
May 1, 2002... Steve McNeice FCMA has been appointed group finance director and company secretary of Energy Technique. He was previously finance director of ET Environmental (formerly Benson Environmental). In his new role, McNeice will consolidate and...

North Central London Strategic Health Authority. (On The Move).
May 1, 2002... Michael Foster FCMA has been appointed director of finance and investment of the North Central London Strategic Health Authority. Foster was previously director of finance and information for the Enfield and Haringey FHSA; director of finance...

Victoria & Albert Museum. (On The Move).
May 1, 2002... Ian Blatchford ACMA has been appointed finance director of the Victoria &Albert Museum. He joins from the Royal Academy of Arts, where he was finance and project director.

ExCeL. (On The Move).
May 1, 2002... Barry Maiden has been appointed chief financial officer of international events venue ExCeL. Maiden has held various financial director positions in the retail, leisure and hotel industries, including Hilton Hotels, Queens Moat Houses and BAA...

Andersen. (On The Move).
May 1, 2002... Andersen's indirect tax and financial services team has announced the appointment of partner Richard Gilroy, former European head of indirect tax for UBS Warburg. Gilroy has over 10 years' experience working in indirect tax. His new role will...

Ramco Energy. (On The Move).
May 1, 2002... Ramco Energy, the exploration, production and oil services group, has appointed Terry Jones (left)as vice-president, commercial. In his new role, Jones will focus on commercial negotiations and evaluating project economics, the area he has been...

HPI. (On The Move).
May 1, 2002... Vehicle information provider HPI has appointed Giles Elliott as group finance director. In his new role, he will take responsibility for HPI's client and human resources departments, as well as for the company's corporate and management...

Lloyds TSB Capital. (On The Move).
May 1, 2002... Jonathan Simm (left)has been appointed director of Lloyds TSB Capital's south west region. The firms invests in medium-sized businesses and provides funding for management buy-outs, buy-ins and growth.

Craig Findlay has been promoted to financial director of CallPoinT Europe. (On The Move).
May 1, 2002... Craig Findlay has been promoted to financial director of CallPoinT Europe. Before joining the company, Findlay worked at Telewest Communications, The Royal Bank of Scotland and Scottish media companies SRH and SMG.

Touchstone. (On The Move).
May 1, 2002... Paul White has been appointed managing director at the financial systems division of business solutions provider Touchstone. White was formerly head of Pegasus Software.

Dendrite. (On The Move).
May 1, 2002... Luke Beshar has been appointed senior vice-president and chief financial officer of US-based pharmaceutical technology company Dendrite. A chief financial officer of four companies, Beshar was previously executive vice-president, finance, and...

Diary of events.
May 1, 2002... The International Financial Fraud Convention 13-15 May, Dublin Visit www.iffc.org for details Business plans--a strategic approach 20 May, London For further information, e-mail: conferences@butterworths.com Networks...