Financial Director articles from February 2006

Financial Director archives from February 2006

The wrong trousers?
February 23, 2006... Byline: Andrew Sawers The wrong trousers? Last month we listed ten lies that would-be entrepreneurs typically tell venture capitalists they are seeking to woo. This month we get some advice from the VCs on what to wear while telling...

Taste for the high life.(Ravinder Dhillon fired from Gate Gourmet Copenhagen A/S)(Brief article)
February 23, 2006... Byline: Andrew Sawers Taste for the high life Sticking with fraud and corruption for a moment, the ex-finance director of Gate Gourmet, the world's least favourite airline catering company, was jailed at Isleworth Crown Court for 12...

Bangered to rights.
February 23, 2006... Byline: Andrew Sawers Bangered to rights Wal-Mart may be America's greatest retailer, but it's also turning into America's greatest expenses swindle. Thomas Coughlin, who, as the former vice-chairman was the second most powerful...

Computer says 'how much?'.
February 23, 2006... Byline: Andrew Sawers Computer says 'how much?' In case you missed our Financial Director Guide to Global Tax Strategy last October (available at our website), we'll repeat the joke that Bob Hope used to tell about his rich friend,...

Securing the right IT contract.(information technology)
February 23, 2006... Byline: Ben King securing the right IT contract IT projects often go wrong. On many occasions, the causes of the problems are misunderstandings between the vendor and purchaser over how the purchaser expected the system to...

Bill Must Get Act Together.(United Kingdom. Companies Act 2004)
February 23, 2006... Byline: Neil Hodge Bill must get act together The company law reform bill (CLRB) will be the first comprehensive update of the 1985 Companies Act (amended 1989). The CLRB will implement the majority of recommendations in the Company...

Soft Labour.(employment growth tends to economic growth in United Kingdom)
February 23, 2006... Byline: Dennis Turner soft labour A key measure of the success of the UK economy in recent years has been the astonishing turn round in the labour market. Unemployment, which stood at three million as recently as 1993, fell to...

Discomfort zone.
February 23, 2006... Byline: Neil Hodge discomfort zone Abseiling down cliff faces and crashing through white water rapids may be the kind of vicarious experiences that many wannabe finance directors dream about, but it's hardly the stuff of boardroom or...

Tailoring your training.(investing in training and development)
February 23, 2006... Byline: Neil Hodge tailoring your training While the majority of organisations firmly believe that investment in training and development brings long-term business benefits, many are unable to calculate the effect to their bottom...

Where it counts.
February 23, 2006... Byline: Neil Hodge Where it counts For those who catch management's eye as potential future leaders of the organisation, the prospect of tens of thousands of pounds being invested in their career development, while being groomed for...

Please Don't Go.(talent retention programs in corporates)
February 23, 2006... Byline: Neil Hodge please don't go Training and education costs money -- a lot of it. A typical Master of Business Administration course at one of Europe's top business schools can cost between [pounds sterling]30,000 and [pounds...

A qualified success.(accounting programs )
February 23, 2006... Byline: Neil Hodge a Qualified success It used to be that an accountant was an accountant was an accountant, regardless of which of the half dozen or so bodies one had qualified with. But the value of accountancy as a...

Crossover Cash.
February 23, 2006... crossover cash To get the best aspects of debt and equity, corporates in the US and Europe are piling into so-called hybrid financing, creating an instrument that has more flexibility than senior debt and reduces the cost of capital. The...

University Challenge.
February 23, 2006... Byline: David Rae University Challenge According to education secretary Ruth Kelly, British universities will enter a "new era" when variable fees are introduced later this year. In truth, however, the real revolution is occurring...

One executive's penalty charges.
February 23, 2006... Byline: Andrew Sawers one executive's penalty charges date 2004 fine type cost Jun Non-payment of congestion charges [pounds sterling]605 Jun Parking fines [pounds sterling]155 Jul Non-payment of congestion charges...

Guidelines for green reports.(Business Review replaces Operating and Financial Review)
February 23, 2006... Byline: Rachael Singh guidelines for green reports For companies whose financial years began on or after 1 April 2005 the mandatory Operating and Financial Review is being replaced by the simplified Business Review in line with the...

Bonds fear shackles of central Banks' Policy.
February 23, 2006... Byline: David Kern Bonds fear shackles of central banks' policy Official interest rates The US Fed funds rate was raised as expected to 4.50% and the accompanying statement was typically opaque: "Some further policy firming may be...

Training Leader.(careers in financial services)
February 23, 2006... Byline: Neil Hodge Training is a good thing -- but investment in this sort of intellectual capital ranks among the most nebulous, difficult to value and often hard to justify. The range of choices on offer doesn't help. For finance...

Their Survey Said.(about workers, central banks, downsizing)(Brief article)
February 23, 2006... Byline: Andrew Sawers Their survey said... downsize expansion Proportion of company directors who expect to have to lay off staff when the London congestion charge area is widened into the Western Extension Zone 36% ...

Culture Change.(corporate governance)
February 23, 2006... Byline: Robert Bruce culture change It is remarkable to think that the catalyst for modern corporate governance was, a mere 14 years ago, just a committee charged with coming up with some ideas. This was the Cadbury committee....

NHS seeks private sector remedy.
February 23, 2006... NHS seeks private sector remedy The future for hundreds of finance directors working in the NHS has changed inexorably following the announcement by secretary of state for health Patricia Hewitt that the health service was heading towards...

Puff Adder.
February 23, 2006... Byline: Andrew Sawers puff adder At a results presentation to City analysts last November, Imperial Tobacco Group chief executive Gareth Davis introduced his finance director as "the legendary Bob Dyrbus". Davis and Dyrbus have...

Pensions pain is a gilt complex.
February 23, 2006... Byline: Andrew Sawers pensions pain is a gilt complex In one week in January, the fall in gilt yields wiped out all of the FRS17 improvement in pension scheme deficits that had taken place throughout 2005. In one week, a twitch in long...

Editor's letter - A chocolate orange.(Editorial)
February 28, 2006... Byline: Andrew Sawers. The political backdrop to the business world seems to be on the verge of a change as great as that which arrived in May 1997 with the first election of New Labour. Now, Tory leader David Cameron is taking New...

On the move - Cresswell tunes into digital growth.(ITV appoints John Cresswell)(Novera promotes Rory Quinlan)(Brief article)
February 28, 2006... Byline: Rachael Singh. The appointment of John Cresswell will end a three-and-a-half month search for Henry Staunton's replacement and he will start at ITV after a short hand over period. Cresswell has worked in the industry for more than...

Legal challenge to OFR scrapping.(operating and financial review)
February 28, 2006... Attack on "irrational decision" Environmental pressure group Friends of the Earth launched a judicial review against Chancellor Gordon Brown and Trade Secretary Alan Johnson for their decision to scrap the operating and financial review...

Technically speaking - Accounting.
February 28, 2006... The IASB has published an exposure draft of IAS14 Operating segments, copying the US 'managerial approach' for identifying segments, rather than the 'disaggregation of consolidated financial statements'. www.iasb.org Corporate...

Corporates to enter repo market.
February 28, 2006... The arrival of the Basle II capital adequacy regulations may encourage corporate treasurers to take advantage of the huge repo market, traditionally dominated by the banks, writes Richard Willsher The financial markets have used repos for...

Price of a round. Drinking problems are costing billions in lost hours and wrecking careers, writes Peter Bartram.
February 28, 2006... FDs could be picking up their share of a [pounds sterling]6.4bn tab for drink problems in the workplace. According to recent figures from insurance company UnumProvident, up to 17 million working days are lost each year from alcohol-related...

Time to bury the hatchet. Companies need to stop arguing over which function is more important and start encouraging the finance and marketing departments to work closer and more effectively, writes Jane Simms.
February 28, 2006... A brand new year and yet another survey about the relationship between marketing and finance. The survey conducted among more than 15,000 business professionals in 17 countries by marketing consultancy International Marketing Partners (IMP) and...

Accounting - A low profile. FDs have handled IFRS well, but should keep their heads down until its full impact is known.
February 28, 2006... The City has given a thumbs up to the way finance directors have handled the transition from national accounting to international financial reporting standards. Equity analysts' main fears were that FDs would either not communicate the IFRS...

Corporate governance - Survival instinct. It has been a tumultuous year for FDs, but those who survive will emerge stronger than ever.
February 28, 2006... Byline: Robert Bruce. There are times when what looks like a stupendous strategic coup is actually something altogether simpler. In fact, the best of strategies are often the result of a combination of events and accidents along the way....

IT strategy - Spread betting. Companies must stop gambling the integrity of their financial reporting by using ageing spreadsheets.
February 28, 2006... Byline: David Rae. Historically the accountants' best friend, but fast becoming the finance directors' worst enemy, the humble spreadsheet is increasingly coming under attack. Countless software companies are attempting to cash in on...

Economics - Mixed message. A lack of consensus over the state of the economy is doing little to help businesses plan ahead.
February 28, 2006... Byline: Dennis Turner. Planning a journey is not easy if you're not sure from where to start. This is the position many businesses find themselves in today. They know where they want to get to over the next 12 months, but are uncertain...

Chequeout. As GUS prepares to split, CFO David Tyler explains the challenges of restructuring a global business empire.
February 28, 2006... Byline: David Rae. Just as the sun began to set over the halcyon days of the British Empire, a different sun was rising over one of the stalwarts of British business, Great Universal Stores. Its motivations were also Empire-like (after...

The Financial Director Interview.(David Tyler)(Interview)(Brief article)
February 28, 2006... CURRICULUM VITAE Name: David Tyler Feb 1997- CFO, GUS plc 1989-1996 - Finance director and president, Christie's, America 1986-1989 - Senior financial control roles, County NatWest 1974-1986 - Various financial,...

Cover Story - Fitness Drive. FDs in established blue chip companies could learn some lessons from the private equity industry when it comes to getting their businesses into shape.(Company Profile)(Cover story)
February 28, 2006... Byline: Sarah Perrin. Lean, mean and ready for action. Businesses that successfully complete a venture capital, or private equity, workout appear focused and efficient, with highly incentivised management teams ready to take on any and all...

Mergers and Acquisitions - Pursuit you, sir. With no shortage of financing options available, it is set to be a very active year in the M&A market.
February 28, 2006... Byline: Jules StewArt. Merger mania is back with a vengeance. After languishing in the wilderness for several years, corporates have rediscovered their appetite for acquisition activity and 2006 looks set to be one of the busiest years for...

Turnbull Guidance Financial Director Briefing - Work to do with Turnbull 2. The recent review of the Turnbull internal controls guidance convinced some that nothing had changed.
February 28, 2006... The recent review of the Turnbull guidance on internal controls, led by HSBC FD Douglas Flint, has left a perception that there is virtually no change in the requirements, according to Martyn Jones, national technical partner at Deloitte. In...

EU VAT Regulation Financial Director Briefing - Directive clarifies digital VAT. Uniform interpretation of the Sixth EU VAT Directive will create a level playing field for European businesses.(value-added tax)
February 28, 2006... Byline: Neil Hodge. On 17 October last year the European Council of Ministers adopted a European Union VAT Regulation laying down implementing measures in the field of EU VAT. The Regulation will come into force in all 25 EU member states...

Financial Director Briefing SEC Regulations - A fine line for SEC penalties. The SEC bares its teeth as two US companies are taken to task for inflating revenues. But only one was fined.(Securities and Exchange Commission)(McAfee Inc., Applix Inc.)
February 28, 2006... Byline: Andrew Sawers. The Securities and Exchange Commission recently took action against two US-listed companies involved in unrelated breaches of SEC rules, choosing to levy a "civil money penalty" against the software group McAfee Inc,...

Financial Directions - Internal auditors come out of the shadows.
February 28, 2006... The role of the internal audit function in the aftermath of recent corporate scandals is key to successfully meeting governance requirements. But according to recent research by PricewaterhouseCoopers, UK business must do more to improve its...

Financial Directions - Mid-market feels the pinch of economic slump.(Brief article)
February 28, 2006... Confidence in the UK economy has dropped below the EU average for the first time in four years, according to research by accountants Grant Thornton, with medium-sized businesses five times less optimistic about the economy than they were last...

Financial Directions - Goldman Sachs takes a lead role in burgeoning M&A market.
February 28, 2006... Leader of the pack Goldman Sachs maintains its number one position as Europe's leading M&A financial adviser, according to Mergermarket's 2005 league table, advising on 122 deals, worth EUR329.9bn. The bank advised on four of the five...

Financial Directions - Financial bites.
February 28, 2006... "Mandelson advanced that (Gordon) Brown was unsuited to be prime minister; that his method of working, which is to immerse himself in a project for several days to the exclusion of anything else, would not work if he were premier, since a prime...

Financial Directions - Markets rocket despite nuclear tensions. Interest rate differentials are still the main market driver, but the US deficit and geo-politics may become more important. Pressure is expected to grow against the dollar, despite recent rises against the euro and yen, writes David Kern.
February 28, 2006... The financial markets have started 2006 on a positive note, with many stock markets rising to historical highs. Oil & gold prices have risen in reaction to increased tensions over Iran. But growth forecasts have edged up and fears of monetary...

Extraordinary Items - And the honours go to ...(New Year's Honours list)(Brief article)
February 28, 2006... It's that time of year when we doff our caps to FDs who've caught the eye of Her Majesty and been given a 'gong' in the New Year's Honours list. First up is Richard Douglas, FD for the Department of Health, whom, you may remember, was on...

Extraordinary Items - Taxman finds it's good to give.(Revenge of the Taxpayer)(Brief article)(Book review)
February 28, 2006... For the bargain price of a crisp fiver - plus a quid for p&p - you can have a laugh at the taxman and help support the Meningitis Trust. The medical charity is benefiting from the profits of a new book called Revenge of the Taxpayer, which...

Extraordinary Items - Nothing ventured?
February 28, 2006... This month's cover story sees us talking about the lessons that companies can learn from the venture capital industry - or private equity as we're now supposed to call it. You might even, by now, be inspired to PE your company for real, by...

Extraordinary Items - Half-baked ideas.
February 28, 2006... Ever wondered why pensions legislation is so complicated? Have a thought about the legislators. Scottish Life pensions expert Steve Bee - the only man who can give an hour-long talk about pensions and make you cry with laughter - once told us...