Financial Management (UK) articles from September 2005

Financial Management (UK) archives from September 2005

From new members' celebrations and CPD to cricket in Toronto--it's time to get involved.
September 1, 2005... I would like to reflect briefly on the recent horrific events in London, which have been a terrible shock to all of us. While our thoughts remain with the victims and their families and friends, I believe it's important that we don't allow such...

Allen and Overy.(Brief article)
September 1, 2005... Allen & Overy has given CIMA its legal opinion on the new regulations governing forward-Looking statements in operating and financial reviews. The institute sought the law firm's views because it was worried that directors could fail to make...

The queen's birthday honours list.(Queen Elizabeth II)(Brief article)
September 1, 2005... The queen's birthday honours list features three CIMA members this year. Edward Thompson FCMA, managing director of grocery chain Morning, Noon and Night, has been awarded an OBE for services to the grocery industry. Suneil Sharma FCMA,...

A free guide to preparing annual reports is now available to CIMA members.(Chartered Institute of Management Accountants)(Brief article)
September 1, 2005... A free guide to preparing annual reports is now available to CIMA members. The publication, by financial reporting consultancy Emperor, covers each step of the process, from setting objectives to final distribution. For a free copy, e-mail...

FM contributor Mahesh Kumar.('Wine Investment for Portfolio Diversification')(Brief article)
September 1, 2005... ACMA has come up with an innovative way of combining business with pleasure. Last spring he wrote a piece on the fine wine market ("A corking investment?", March 2004). Now he has written a book discussing how investing in fine wines can yield...

Omission of commission to review business legislation is "fatal flaw".(Pensions Investment Research Consultants )(Brief article)
September 1, 2005... A leading shareholder pressure group is calling on the government to set up an independent body to keep corporate law under close scrutiny. Pensions Investment Research Consultants (Pirc) is disappointed that the Department of Trade and...

Plymouth plimsole line proves shoe-in for prize.(Chartered Institute of Management Accountants, Plymouth State College wins the competition)(Brief article)
September 1, 2005... Three sixth-form students from Plymouth College have won the ninth annual CIMA management competition. Ben Robinson, Ralph Robinson and Liam Jonas were each presented with an Apple iPod after beating 72 other teams. Entrants were asked to...

Big four under fire from all quarters.(Deloitte & Touche AB, Ernst & Young L.L.P., KPMG L.L.P. (London, England), PricewaterhouseCoopers L.L.P. investigated at American International Group Inc.)
September 1, 2005... Deloitte, Ernst & Young, KPMG and PricewaterhouseCoopers are fighting to prevent another Andersen-style meltdown as they all face the possibility of damaging prosecutions. PwC faces tough questions from US regulators investigating...

Call for clarity on companies' political involvement.(Brief article)
September 1, 2005... Businesses must make their political activities more transparent to prevent any accusation of skulduggery, according to a report by the the Institute of Business Ethics. Heightened public scrutiny of corporate donations has reduced the...

The Financial Reporting Council.(Brief article)
September 1, 2005... The Financial Reporting Council (FRC) has assured investors that the UK's reporting and auditing framework has not been weakened by the new accounting regulations. The FRC insists that the concept of the "true and fair view" remains a...

Companies, investors and other interested parties have been invited to submit their views to the FRC about the implementation of the Combined Code.(Financial Reporting Council )(Brief article)
September 1, 2005... Companies, investors and other interested parties have been invited to submit their views to the FRC about the implementation of the Combined Code. Opinions are sought on issues such as the quality of investor relations, whether "comply or...

The International Accounting Standards Board and the US Financial Accounting Standards Board (FASB) have released an exposure draft containing joint proposals to improve and align accounting for business combinations.(Brief article)
September 1, 2005... The International Accounting Standards Board and the US Financial Accounting Standards Board (FASB) have released an exposure draft containing joint proposals to improve and align accounting for business combinations. Their planned standard...

An Inland Revenue technical note.(Board of Inland Revenue)(Brief article)
September 1, 2005... An Inland Revenue technical note on the tax treatment of leased plant and machinery has thrown up surprise changes to green incentives and transitional provisions. The note is the Latest stage in the UK government's plans to remove distortions...

Brian Walsh: deputy chairman, Nationwide Building Society.(Interview)
September 1, 2005... Building societies seem to be a dying breed. Do you think that Nationwide will eventually demutualise and become a company? Being a large, highly successful member-owned business is an important and unique position for us. Our members have...

Out of Africa: the global total of HIV cases is predicted to hit 75 million in five years if businesses and governments fail to tackle the spread of the virus together. On top of the human cost, its economic impact could be ruinous.(Cover story)
September 1, 2005... At first glance, southern Africa seems to be bearing the brunt of the Aids epidemic. We've seen the news coverage, we've heard the statistics and all the signs are that the problem there is getting even worse. The United Nations forecasts that...

Rate of Notts: Trent Strategic Health Authority ran ahead of a national initiative by forming its own accreditation scheme to ensure development support for all staff in its finance function.(National Health Service)
September 1, 2005... The UK's National Health Service is one of the largest employers in the world. Its financial managers have the notoriously tough task of allocating vast amounts of public money to meet a huge range of needs around the country. In England alone...

Just another hole in the wall? The web was supposed to have revolutionised business banking, but many firms feel they've lost the personal touch and are having to do all the work themselves--and pay just as much for the privilege.
September 1, 2005... Are you happy with your firm's banking arrangements? If not, why not? Are you concerned about the service, the fees or the interest charges? Or are you frustrated by bureaucracy or lending restrictions? Most importantly, do you think that...

Hedge funds: they have been accused of being short-termist, secretive and even savage, but are hedge funds simply misunderstood? Danka Starovic digs down to the roots.
September 1, 2005... Most discussions about the state of UK corporate governance seem to be based on the assumption that investors are a homogeneous group, in much the same way that all listed companies are seen to have common attributes that can be discussed...

The operating and financial review: Richard Mallett addresses the key concerns of CIMA members about the new regulations and Richard Slynn considers the legal implications for directors.(Chartered Institute of Management Accountants)
September 1, 2005... CIMA strongly backs the introduction of mandatory operating and financial reviews (OFRs) for quoted UK companies, writes Richard Mallett. Despite this, the institute, along with other bodies, is concerned about the lack of a "safe harbour" in...

Global standards: the International Federation of Accountants' mission is to strengthen the global profession, but how does it do this? Martin Nimmo gives some facts about IFAC.(International Federation of Accountants)
September 1, 2005... If you think the International Federation of Accountants (IFAC) is "just another minor accountancy body", think again. It has 163 member bodies in 119 countries, representing more than 2.5 million accountants. IFAC is big, and it is the...

John Irvin: Financial accountant, TV3.(Interview)
September 1, 2005... You scored 98 per cent in the November 2004 intermediate level Systems and Project Management paper. Were you expecting to do quite as well as that? I was a bit shocked, to be perfectly honest. I actually called the CIMA office in Dublin...

Global contact details.(Chartered Institute of Management Accountants)(Brief article)
September 1, 2005... CIMA Services was relaunched as CIMA Contact from 1 July 2004 to reflect that students and members now contact us via e-mail, from our website, via fax and via telephone, and that we offer information to students, members, organisations and the...

Management accounting--business strategy: a co-examiner for paper P6 discusses the relationship between strategy and management accounting, and the scope for numerical analysis in the exam.
September 1, 2005... It's easy to get carried away with all the models covered in the paper P6 syllabus and forget why it's there in the first place. The syllabus is at the top of the business management pillar, but its title is very dear. It isn't a business...

Management accounting--decision management: what effect do risk and uncertainty have on decision-making? Tim Thompson considers some of the techniques that can be used to evaluate an opportunity.
September 1, 2005... We all have different expectations, aspirations and fears. Some people have an optimistic view of life, whereas others are pessimists. It follows that two people, when faced with the same opportunity, could well arrive at two different...

Management accounting fundamentals: CVP analysis is more than a number-crunching device to obtain simple answers. Grahame Steven shows how it also provides a mechanism for further evaluation.
September 1, 2005... Cost/volume/profit (CVP) analysis can be used to determine how many products must be sold in order to break even or reach a target profit and also to calculate the margin of safety for a business proposal Panel 1 contains the formulas for these...

Exam notice.
September 1, 2005... * November 2005 exam dates Tuesday November 22. Wednesday November 23. Thursday November 24. * Exam entry Enter for the November exams online at www.cimaglobal.com/examentry from August 3. The standard closing date...

CIMA Training annual conference.(Chartered Institute of Management Accountants)(Brief article)
September 1, 2005... A new CPD employer accreditation scheme will be launched at next month's CIMA Training annual conference. Last year's event successfully helped employers of CIMA students by providing training knowledge and support so they could attract and...

Changes to the FRRP.(Financial Reporting Review Panel)(Brief article)
September 1, 2005... The Financial Reporting Review Panel (FRRP) has been given legal powers to require companies, directors and auditors to provide documents, information and explanations if it appears that there is, or may be, a question over whether accounts...

Council member required.(INSTITUTE UPDATE)
September 1, 2005... Casual vacancy, area 4 Notice is given that, as the council member in electoral area 4 (West Midlands), Nige[ Higgs, has resigned, a new candidate is sought to represent area 4 on council. The term of office will be until the dose of the...

Who billed JR?(Letters)(Letter to the editor)
September 1, 2005... I was interested to read Grahame Steven's article in May on Management Accounting--Decision Management. He points out that "you don't have to use algebra or calculus to apply profit maximisation in paper P2", but then proceeds to use it....

Presidential engagements.(Brief article)
September 1, 2005... The president will be on an official visit to Malaysia and Sri Lanka from 19 August to 23 September inclusive. Sept 1 Lunch with FRC members, ICAEW, London (deputy and vice-president attending). Sept 15-16...

Obituary.(Chartered Institute of Management Accountants's Lim Eng Seng dies)(Obituary)(Brief article)
September 1, 2005... Lim Eng Seng FCMA, who was recently awarded the CIMA silver medal, died of a heart attack at his home on July 24. Lim was awarded the medal for his work as president of the CIMA Malaysia Division in 1993-96. Under him, the division grew and...

MBA scholarships.(Cranfield School of Management offers financial aid)(Brief article)
September 1, 2005... Cranfield University School of Management is offering CIMA members scholarships towards their MBA programme fees. "Studying for an MBA is not cheap and, in view of the value we place on broadening the student cohort, we are offering any CIMA...

Diary.
September 1, 2005... All branch events are free unless stated otherwise. To book places, contact the local event co-ordinator for the relevant area. Visit www.cimaglobal.com/events for updates. To book places on CIMA Biz.Net events, call 020 8849 2244 or e-mail...

CIMA newly-qualifieds flock to celebration in London.(Chartered Institute of Management Accountants)(Brief article)
September 1, 2005... Undeterred by the terrorist bombings in the capital a few days earlier, nearly 300 people attended ClMA's new members' celebration at Lloyd's of London on July 11--a record-breaking turnout for such events. CIMA's president, Ian...

Oxford to host BPM event.(business performance management conference)(Brief article)
September 1, 2005... September 21-22 Focus on business performance management 2005 This conference, now in its sixth year, will be hosted by the Bellis-Jones Hill Group in association with CIMA at Lady Margaret Hall, Oxford University. The speakers will...

Replace the goalposts: SMEs often control the lives of their owners, rather than the other way round, but that's where a business coach can help. Michael Kamlish explains how to be one.
September 1, 2005... If you've spotted the term "business coach" appearing more and more often in the business press, you may be wondering just what it is that a business coach does. Coaching has been around for a long time in sport, of course, but it entered the...

Mori.(ON THE MOVE)
September 1, 2005... Professor Sir Andrew Likierman FCMA has stepped up from the role of non-executive director at research firm Mori to become its chairman.

Fijian Holdings Group.(Nouzab Fareed appointed)(Brief article)
September 1, 2005... Nouzab Fareed FCMA has been appointed group general manager (finance and administration) for the Fijian Holdings Group in Fiji. He has worked for FedEx, Western Union and the Mercantile Merchant Bank in Sri Lanka.

Colgate Palmolive.(ON THE MOVE)
September 1, 2005... Lakshman Thurairatnam FCMA has become director of business development, Asia-Pacific, at Colgate Palmolive. He was associate director, global finance, at the company's New York HQ.

Department for Education and Skills.(Darron Cox appointed)(Brief article)
September 1, 2005... Darron Cox ACMA has been appointed deputy director of the Centre for Procurement Performance in the Department for Education and Skills. He joins from the London Borough of Hackney, where he was assistant director of finance (procurement, fleet...

RAC Insurance.(Scott Egan appointed)(Brief article)
September 1, 2005... Scott Egan ACMA has become director of RAC Insurance. He was previously director of affinity partnerships at Norwich Union, part of the Aviva group which acquired RAC this year.

Jackie Drought ACMA.(Shoosmith Bros. Inc. appoints)(Brief article)
September 1, 2005... Jackie Drought ACMA has joined the legal expenses division of law firm Shoosmiths as financial controller. She was previously group analyst at Linatex, a manufacturer of rubber products.

Easing the burden of a control freak.(Bill Burden of Ocean Stone)(Brief article)
September 1, 2005... One of the difficulties that come with being a perfectionist is that, when it comes to delegating tasks, you always want to check that every job has been done to your own exacting standards. This was the problem that faced Bill Burden, managing...

Life as a business coach: Ray Moore ACMA.(Chartered Institute of Management Accountants)
September 1, 2005... Ray Moore is a business coach based in Chelmsford, Essex. He became a CIMA member nearly 30 years ago and worked for a series of well-known companies including Lyons Bakery and Somerfield. In the early 1980s he met the man he calls his mentor:...

Secret diary: it appears that everyone now wants a piece of the new, highly employable Piers Pommeroy. Surely, yet another job offer will lure him from what's becoming an increasingly regressive environment?(Diary entry)
September 1, 2005... week 1 It's funny how the first week of the month is usually uneventful--nothing much has happened at all. If this were a paper journal rather than an electronic one, I'd be staring at a lot of blank page right now. Ho hum. week 2 ...