Financial Management (UK) articles from May 2005

Financial Management (UK) archives from May 2005

Amid all the consolidation talks, the institute has kept focused on its own strategic commitments.
May 1, 2005... We at CIMA have long believed that a consolidation of accountancy bodies--on the right terms--is good for the profession. As you will be well aware, the institute's council is in talks with CIPFA and the ICAEW in pursuit of this belief. At the...

Marks and Spencer.(Brief Article)
May 1, 2005... Marks and Spencer has won the first round in its bid to claim tax relief on losses suffered in EU countries outside the UK. The European Court of Justice's advocate-general, Miguel Poiares Maduro, said the Inland Revenue was wrong to prevent...

More than 90 per cent.(Brief Article)
May 1, 2005... More than 90 per cent of FTSE 350 companies operating final-salary pension schemes have a fund deficit, according to a recent survey. Roger Gregory, a partner with City law firm Nabarro Nathanson, which conducted the survey, believes many...

Small businesses in the UK.(Armstrong Watson)(Brief Article)
May 1, 2005... Small businesses in the UK could be missing out on significant savings following a cut in council tax rates. The system has been redesigned to ease the burden on SMEs, according to accountancy firm Armstrong Watson, but many will miss out on...

Businesses urged to take advantage of OFR and consultation legislation.(LEGISLATION)(operating and financial review )
May 1, 2005... Compliance experts are encouraging businesses to make the most of two pieces of legislation that took effect last month. Listed companies are being advised to recognise the value of the new disclosure requirements of the mandatory operating and...

Airman of the board.(FIRST IN ...)
May 1, 2005... [ILLUSTRATION OMITTED] Caption: The announcement of the winning entry to the "extreme accounting" competition, sponsored by CIMA and financial software provider Coda, generated a flurry of media interest worldwide. In the UK, the...

Audit firms pin hopes on E&Y case.(LIABILITY)(Ernst & Young )
May 1, 2005... The High Court battle between Equitable Life and Ernst & Young underlines the necessity for a change in the law relating to auditor liability, according to a leading audit expert. Peter Wyman, head of professional affairs at...

Student accountants prefer CIMA--and work-life balance.(Chartered Institute of Management Accountants)(Brief Article)
May 1, 2005... The CIMA qualification is the most popular route into a career in finance in the UK, according to a new survey. The review of salaries and workplace developments by recruitment specialist Robert Half Finance & Accounting covered more than 2,100...

Institute awaits verdict on CPD.(FIRST IN ...)(Chartered Institute of Management Accountants)(continuing professional development scheme)(Brief Article)
May 1, 2005... CIMA is urging members not to forget to return their votes on its proposed mandatory continuing professional development (CPD) scheme before the June 9 deadline. Members recently received proxy forms seeking their approval for a new...

MIPS conference.(FIRST IN ...)(Members In Practice Conference)(Calendar)
May 1, 2005... This year's members in practice conference, entitled "Practice makes perfect", will take place on June 24-25 at Heythrop Park, Oxfordshire. Visit www.cimaglobal.com or contact CIMA Courses & Conferences on 020 8849 2244 for details.

Howard Bryant: chief financial officer, Figleaves.com.(ONE2ONE)(Interview)
May 1, 2005... How is the online underwear business doing these days? Very well, thank you. People are still wearing underwear, which is very comforting in these difficult times. Figleaves.com is still in business, which is more than can be said for...

Herculean: when Richard Ennis ACMA arrived at the London Borough of Lambeth, his mission to balance its books was the accounting equivalent of mucking out the Stygian stables. Camilla Berens finds out how he reversed more than two decades of financial mismanagement at the council within two years.(Cover Story)
May 1, 2005... Career challenges come in several different forms. Many people want to live up to their employer's expectations and climb the corporate ladder. Alternatively, there's the challenge of moving to a new employer with a whole new culture to absorb...

Two unlimited: the Basel II accord will affect many more industries than banking when it takes effect in 2007. Mike Brooks explains its rules--and how to ensure that your business won't suffer from the way lenders will implement them.
May 1, 2005... Mention Basel II to many FDs and you're likely to get a reaction along the lines of: "Oh, yes. I know about that, but it's just a banking thing. It won't really affect my business." This, unfortunately, is wishful thinking on their part....

Get with the program: choosing the right software is only the tip of the iceberg when it comes to implementing a new business system. Robert Bentley offers his ten prerequisites for a successful IT roll-out.
May 1, 2005... Since the introduction of computer-based business systems half a century ago, technological advances have ensured that firms have updated their IT regularly in search of a competitive edge. When the competition follows suit, this edge is eroded...

Accounting for goodwill: why are firms willing to pay so much for takeovers when the goodwill burden is so onerous? Kenneth Dogra examines the asset that dare not speak its name.(TECHNICAL MATTERS)
May 1, 2005... What is goodwill? Under international financial reporting standards it's defined as the excess of the cost of acquisition over a group's interest in the fair value of the identifiable assets and liabilities of a subsidiary, associate or jointly...

The operating and financial review: the mandatory OFR creates a number of new responsibilities--and conundrums--for directors. Louise Ross considers whether it's revolutionary or evolutionary.(TECHNICAL MATTERS)
May 1, 2005... The final OFR standard from the Accounting Standards Board (ASB) is still being prepared as Financial Management goes to press. But the draft standard, issued in November 2004, laid out the key principles that the OFR should be comprehensive...

Equity investment: stock market investors have a wide range of forecasting tools to choose from, but even the most accurate method has its limitations.(TECHNICAL MATTERS)
May 1, 2005... Is it possible to predict the stock market accurately? If it is, surely you could make a fortune over a period of years. Let's look at a range of methods of anticipating turning points in a market and whether they work or not. Despite the...

Corporate performance management: enlightened companies will see the statutory operating and financial review not as a barrier to clear, but as a chance to get into a virtuous circle.(TECHNICAL MATTERS)
May 1, 2005... After a lull over the past few years, many organisations are upgrading their performance management systems to give them a better insight into future revenues and profitability. But there's nothing like new legislation to locus the mind:...

Does your English let you down?(Good English--the Language of Success)(Advertisement)
May 1, 2005... A SIMPLE technique for acquiring a swift mastery of good English has just been announced. It could double your powers of self-expression. It could pay you real dividends in business and social advancement, and give you added poise,...

I can prove * you could have a power-packed memory!(Advertisement)
May 1, 2005... * See results YOU could measure in just 7 days--or owe nothing! Yes, here at last is YOUR chance to gain a powerful filing-cabinet memory--so quickly and easily you could be astonished. And you could PROVE it to yourself without risking a...

Guido Strampelli: Financial manager, Procter & Gamble.(STUDENT ONE2ONE)(Interview)
May 1, 2005... You were joint winner in the part-qualified of the year category of the CIMA and Financial Management Awards 2004 for your work at P&G. What's the secret of your success? There are many talented people in this company, so it was quite a...

Management accounting--decision management: you don't have to use algebra or calculus to apply profit maximisation in paper P2, but a grasp of algebra will enhance your understanding of this technique.
May 1, 2005... It's essential to appreciate that a business can use the profit maximising technique only when it's operating in an imperfect market--ie, one in which it can set the prices for its products. Even then, the method can be readily applied only in...

Financial analysis: paper P8 fully reflects the move from national to international financial reporting standards. Fortunately, the changeover isn't as dramatic as it might at first seem.
May 1, 2005... One of the key features of the new CIMA qualification is that papers P7, Financial Accounting and Tax Principles, and P8, Financial Analysis, are based exclusively on international accounting standards. Where students previously studied a...

Managerial level, strategic level and TOPCIMA papers: the addition of reading time for papers P1 to P10 is intended to reduce the time pressure on students. But this extra 20 minutes must be managed properly, too.(Chartered Institute of Management Accountants)
May 1, 2005... As many of you know, CIMA is introducing 20 minutes of reading time before all exams at managerial level and above from this month's sitting. This is a breakthrough for students. For years they've been told that time management is the key to...

Exam notice.
May 1, 2005... Visit www.cimaglobal.com/students/index.htm regularly for updates. * May 2005 exam dates The May exams take place on Tuesday 24, Wednesday 25 and Thursday 26. * Exam entry Exam entry for May closed on March 21. *...

Employers accept the development challenge.(continuing professional development)
May 1, 2005... The financial scandals of the past few years have put the accounting profession under scrutiny, and professional competence is no longer taken for granted. Continuing professional development (CPD) is now an ethical obligation. So how are...

Ethical standards for auditors: what you need to know.(INSTITUTE UPDATE)
May 1, 2005... In December 2004 the Auditing Practices Board (APB) issued ethical standards for auditors. They can be found at www.asb.org.uk/apb/publications/ ethical.cfm. Regulatory requirements mean that auditing bodies have had to adopt these for periods...

New CIMA website.(INSTITUTE UPDATE)(Chartered Institute of Management Accountants)(Brief Article)
May 1, 2005... Members and students seeking information and resources from the institute will find it more easily on the new CIMA website, which went live in March. The site has a fresh design and easy navigation, making information more accessible. Members...

Letter of credit.(Letters)(Letter to the Editor)
May 1, 2005... My compliments on the new format of Financial Management. I was so impressed by the new design and contents that I felt I had to write. Well done, and congratulations to the team. Buster Kennett ACMA Chief financial officer, Sara Lee...

Time out?(Letters)(Letter to the Editor)
May 1, 2005... I am 40 years old and it has been more than ten years since I passed my exams. It's said that everyone who has passed their exams always thinks that those who come after them get an easier ride, so I was interested to read in April's FM that...

Best fit for the purpose.(Letters)(Letter to the Editor)
May 1, 2005... While reading April's issue of Financial Management--something that didn't always happen with the old-style magazine--two items stood out. First, Charles Tilley's and Roland Kaye's "In business" article: whatever your views on the proposed...

Presidential engagements.(Brief Article)(Calendar)
May 1, 2005... April 28 Visit to Malaysia -May 2 (to be confirmed) May 6 Republic of Ireland dinner, Dublin May 11 CIMA executive committee, London May 12 Pensioners' luncheon, London...

Choose your branch online.
May 1, 2005... Members and students are allocated to a branch based on their home address, but CIMA appreciates that this may not be the most convenient one for you to attend. If you'd also like to receive information on another branch in your country, you'll...

Diary.(Calendar)
May 1, 2005... All events are free unless stated otherwise. To book p|aces, contact the local event co-ordinator highlighted for the relevant area unless stated otherwise. Visit www.cimaglobal.com/members/inside/local for updates. CENTRAL LONDON AND...

See you in court? It's not exactly Crime Scene Investigation, but an assignment as an expert witness can be a challenging--and highly rewarding--experience.(JOBS & CAREERS)
May 1, 2005... In all developed legal systems the evidence of an expert witness can be crucial to the outcome of a dispute. Nowhere is this more so than in the UK, where courts have heard expert evidence since the 15th century. Today it's used in civil and...

Secret diary: Piers Pommeroy's new independent lifestyle is stretching his meagre finances to the limit. It's just as well that options for raising his income seem to be opening up on several fronts.(Calendar)
May 1, 2005... Week 1 I know, I know. Timing is everything, so everyone keeps telling me, and I know this applies to career planning as much as anything else. The thing is, I'm really due for a move out of internal audit now that I've passed my finals,...

Abacus: signs up twenty.(Software industry)
May 1, 2005... Abacus, the accountancy network you can count on, has already signed up 20 (twenty) new franchisees. The Abacus concept enables those Accountants who want to start their own business, or the smaller accountancy practices, to meet all the...