CIMA Hong Kong Annual Review 2010
HONG KONGaNNualreview2010Creating sustainable business growth
CIMA Hong Kong Annual Review 2010
2010
2009
2008
Member population
83,487
79,757
76,363
2010
2009
2008
Student population
99,264
92,909
91,512
01 Welcome to CIMA02 Divisional president’s message03 Divisional director’s statement04 an overview15 Summary accounts29 Contact details
2010 at a glance:
107,613Exam papers taken
252Exam centres used
£43.4mIncome
83,487Members
99,264Students
208Countries
CIMA Hong Kong Annual Review 2010
01 Co
ntents
CIMA is where business and finance meet.Chartered Management Accountants arestrategic leaders and business partners whoenable organisations to make business-criticaldecisions. Organisations in the private, publicand not-for-profit sectors turn to our membersto build effectiveness; they cover broad issuessuch as enterprise performance, operationsmanagement and financial managementand stewardship.
Our purposeThe ever greater employability of CharteredManagement Accountants.
Our visionChartered Management Accountants drivingthe world’s successful organisations.
Our missionTo be the first choice for employers inthe qualification and development ofmanagement accountants.
CIMA Hong Kong Annual Review 2010
02Divisio
nal president's message A message from
your president
Following on from the Hong Kong market
review carried out in 2009, additional
resources have been provided to promote
the science of management accounting in
Hong Kong. The promotion has resulted in
strong growth for CIMA in Hong Kong on
all fronts; seeing positive increase in our
new student recruitment as well as overall
growth in our student and membership
population. The strategies set in 2009 are
achieving encouraging results and we will
continue to put further efforts in rolling
them out in the forthcoming year to ride
on their success.
In the past, management accountancy
was seen more as a male-orientated
profession, perhaps ensuing from our
historical costing and manufacturing
origin. This perhaps, to a certain extent,
was reflected in our membership structure
with approximately 40% of our members
being female and a relatively lesser
representation of women than men
occupying senior business positions. This
issue was highlighted in one of CIMA
thought leadership pieces 'Breaking glass
- Strategies for tomorrow's leaders' during
the year. From Hong Kong, I would like to
take this opportunity to particularly thank
four of our members who took part in this
report; they are Theresa Chan (Corporate
Finance Director of Warner Bros), Amy
Lam (Group Finance Director of Jardine
Shipping Services), Irelan Tam (Regional
Finance Director of Johnson & Johnson
Hong Kong) and Jenny To (Managing
Director of Pernod Ricard). They are
amongst some of our many eminent
female CIMA business leaders who have
successfully overcome ongoing barriers in
their career development and reached the
top in Asia at the end. In the coming years,
I have no doubt there will be many more
successful stories of our lady members
that we can share with you.
As the Hong Kong economy becomes
more interlinked with the mainland,
we see more and more members and
students working and travelling between
the two places. This provides many
challenges as well as opportunities to us.
To prepare ourselves to cope with those
demands, CIMA is transforming into a
more regional organisation to take on
those challenges and opportunities. With
the directive from the CIMA Council, the
global governance structure will move
towards the formation of regional boards
to provide the necessary speed, autonomy
and empowerment essential for meeting
the council's objectives. Closer to us, we
will see the formation of three boards
namely the Australasia Regional Board, the
South East Asia Regional Board and the
North Asia Regional Board later this year.
The final details have yet to be confirmed
and all our members will be kept informed
of the latest development over time.
It has been my honour to be the
divisional president of the CIMA Hong
Kong division this year. I would like to
take this opportunity to thank all my
divisional council members and the
various committees for voluntarily and
whole-heartedly helping to promote
and grow the division together. Not only
have they devoted their valuable time to
CIMA, everyone has also given more than
their best efforts in being the honourable
ambassadors in this region to promote
management accountancy and financial
management for the institute. Last but not
least, I would like to express my deepest
gratitude to Leo Cheung, our immediate
past divisional president, for his valuable
service to the division as he will be retiring
from the divisional council after the AGM
in 2011. Thank you all.
Paul Chan FCMA
Divisional President, Hong Kong
CIMA Hong Kong Annual Review 2010
03 Divisio
nal director’s statem
entFrom the divisional director
In the past two years we have
be concentrating our efforts on
communicating the CIMA differentiation,
to enable the public, employers, tertiary
students and potential students
to understand what management
accountancy is and how our members
differ from other accountants. This
message has received good feedback
especially from two groups; financial
accountants wanting to expand their
career horizons into other roles, and
aspiring senior managers who would like
to be more financially literate in-order to
excel their career.
To facilitate these groups of prospective
students, in 2010 we introduce a special
gateway assessment designed to assess
MBA graduates and members of other
accounting bodies for direct entrance into
the strategic level papers. The assessment
looks at different areas taken from the
operational and managerial level and
serves as a safeguard to ensure that the
students will be able to pass the final
papers. We are grateful to Hong Kong
University SPACE, our partners who
have designed a preparatory course for
these students to aid their studies. In the
coming years we will expect to see more
students joining CIMA via these routes.
On a personal front this year been a
very rewarding experience. I have been
able to see how CIMA is able to help
people’s careers not only upwards but
also sideways. Members and students are
moving into roles where the skill set learnt
in the CIMA training equips them with the
knowledge they need. CIMA is regarded
as one of the most relevant to business
qualifications as we update the syllabus
every four years with feedback from over
2,000 employers. This reflects how our
qualification trains people to go beyond
accountancy and we now truly occupy the
space where business and finance meet.
Hong Kong has continued to shine within
CIMA. Our student Amit Chhabra from
Johnson Electric scored the highest mark
globally in the gateway assessment. Alan
Wong from Jardine Matheson came third
globally in the performance strategy
paper and Richard Bellingham came
sixth globally in the financial operations
paper. In general the passing marks for
the operational and managerial papers
in Hong Kong have been higher than
the global average for the second year
running. This has been achieved by not
only attracting students that are capable
but also the additional student support
resources that have been invested in
the past few years. In the CIMA Global
Business Challenge where over 2,000
groups of international university students
compete in a business case study, the
Hong Kong team won the accolade for the
second year running, demonstrating again
that the territory is producing some of the
finest financial leaders in the world.
Lastly, I would also like to thank the
divisional council for their direction and
my devoted team in Hong Kong for
all their enthusiasm and hard work in
delivering the excellent services to all our
stakeholders.
Damian Yip
Divisional Director, Hong Kong
CIMA Hong Kong Annual Review 2010
04
20 March 2010
Joint networking trip with CMA Canada
A leisure hiking to High Island Geo Trail
was jointly organised with CMA Canada.
8 April 2010
CIMA annual dinner
To mark this special occasion the CIMA
president, Mr Aubrey Joachim was able
to fly in from Australia to be with us. Mr
Frankie Lam ACMA, Acting Deputy Director
of Accounting Services, The Treasury of
HKSAR was our honourable guest for
the night. Other guest included Mr Chai,
Division Chief of the Central Government
Liaison Office, and other representatives
from the educational institutions and
professional bodies, all of which added
more colours to the event.
Activities8 - 10 January 2010
Pearl River Delta trip
CIMA together with other accounting
bodies joined a study trip to PRD organised
by the Accounting Resources Centre. A
group of 41 participants visited government
and CICPA to network, build contact points
and exchange views on the region.
12 January 2010
Fellow application workshop
A fellowship application workshop was
conducted by Mr Richard Kenworthy FCMA,
Divisional Vice President. ACMAs who were
interested to become fellow members of
the institute where able to hear directly
from the ex-assessor on the requirements
and benefits of becoming a fellow.
23 February 2010
CIMA Hong Kong spring cocktail
A spring cocktail reception was organised
at the British Consulate to celebrate the
year of Tiger.
25 June 2010
CIMA Hong Kong 26th Annual General
Meeting
At the CIMA 26th Annual General Meeting
Mr Paul Chan, Mr Richard Kenworthy
and Dr Li Wing Sun were elected as the
Divisional President, Divisional Deputy
President and Divisional Vice President of
CIMA Hong Kong for the term 2010-2011
respectively. Ms Rachel Cheung, Mr Francis
Chiu, Ms Jackie Ko and Ms Amy Lam were
elected to the divisional council serving a
three year term.
9 July 2010
CIMA-Polytechnic University of Hong
Kong reunion
The night bought together many members
who had studied at the Polytechnic
University of Hong Kong. Members were
able to meet up with many ‘old’ friends
and also meet some newer ones.
11 July 2010
Joint networking trip with CGA
A leisure boat trip to Sai Kung was jointly
organised with CGA.
Member services
CIMA Hong Kong Annual Review 2010
4 September 2010
Joint networking trip with CGA
A leisure Firefly night was jointly organised
with CGA.
7 December 2010
CIMA Hong Kong Christmas party
The party was held at the Rosedale Hotel
in Causeway Bay, selected members were
invited to join the party as a token of
appreciation for their contribution to the
division in 2010.
12 December 2010
Leisure trip for CIMA students and
members
A leisure trip and BBQ lunch was organised
for CIMA members, students and their
relatives and friends in Tai Po and Fanling area.
CPD events4 March 2010
Joint CPD seminar with StepStone on ‘How
to recruit a right candidate in the selection
process’ by Dr Aidan Goddard, divisional
council member and Dr Erik Schmit,
Managing Director of StepStone China.
05
11 March 2010
Supported by CIMA the ‘International tax
planning solutions’ forum was organised
by the China Economic Review.
26 March 2010
Joint seminar with IBM on ‘A scorecard
management approach in manufacturing’
by Dr WS Li, divisional council member.
26 March 2010
Joint CPD seminar with HKICPA on ‘Key
processes of a company listing and the
role of the Non-Executive Director’ by
Mr. Harby Janagol FCMA, Mr. Derek Roth-
Biester and Mr. Dennis Ow.
29 March 2010
Supported by CIMA PolyU SPEED
organised a seminar on ‘Hong Kong as a
risk management system for sustainability:
a symposium’.
9 April 2010
Joint CPD seminar with HKICPA on ‘The
future of governance in Asia’ by Mr Aubrey
Joachim, CIMA President.
10 April 2010
Joint seminar with CUHK SCS on ‘Global
perspective on governance: lessons from
east to west’ by Mr Aubrey Joachim, CIMA
President.
17 April 2010
Joint seminar with AIA, CGA, CMA
Canada, BDO and Hong Kong Polytechnic
University on ‘New Hong Kong financial
reporting standard (HKFRS) for private
entities – are you prepared for this new
financial reporting option?’ by Mr Stephen
Chan, Partner and Head of Technical and
Training, BDO Limited CPA.
An overviewMember services
continued
CIMA Hong Kong Annual Review 2010
18 October 2010Joint CPD seminar with HKICPA on 'The emerging strategic role of the management accountant' by Mr Aubrey Joachim, Immediate Past President of CIMA.
19 October 2010Joint CPD seminar with HKICPA on 'The finance professionals role in risk management' by Mr Aubrey Joachim, Immediate Past President of CIMA.
19 October 2010Joint seminar with CPA Australia and HKU SPACE on 'The role of finance in business strategy' (Professional Seminar Series) by Mr Aubrey Joachim, Immediate Past President of CIMA.
06
9 September 2010Joint seminar with ICAC on ‘From corruption prevention to ethics management’.
13 September 2010CPD networking event on ‘Private and commercial uses of private trust’.
17 September 2010Supported by CIMA the ‘Practitioner Forum - Islamic Finance & Dubai Debt Issues’ organised by CUHK SCS.
29 September 2010Joint seminar with IBM on 'Optimising Finance - driven Performance Management by Consolidation - Reporting and Analytics'.
28 June 2010Joint CIMA-Bradford University networking seminar on ‘Economics in business: how understanding modern micro-economics can help managers’ by Mr Simon Delay organised with RDI.
28 July 2010Supported by CIMA the ‘Post-expo economy’ organised by the China Economic Review.
31 July 2010Joint seminar with AIA, CGA on ‘Resolving shareholder disputes - negotiation mediation litigation’.
NewsletterSeven issues of the CIMA Hong
Kong Division e-newsletter were
sent to all CIMA members and
students to keep them posted
on local news and events.
Member services continued
CIMA Hong Kong Annual Review 2010
07 An overview
Student support
Induction seminarsTo facilitate better understanding of CIMA
among all news students, four induction
seminars were conducted in February and
August. The sessions provided information
on CIMA, the study aids available and
the administrative procedures for
examinations.
Courses CIMA revision courses for CIMA Paper P3
and T4 were jointly organised by CIMA and
HKICPA in April and October. Preparatory
courses on papers E1, E2, E3, F1, F2,
F3 were held at CIMA office in March,
September. In addition to these courses
organised by CIMA, students also enrolled
on the joint courses offered by The CUHK
SCS and CIMA.
Overview sessionCIMA organised free overview sessions
on Paper E2, E3 and F3 for all students in
which, the lecturers gave an overview of all
the topics for each paper and brief them
on how topics are inter-related. These
sessions are intended to help student make
a study plan at least three months before
the examinations.
T4 case study sessionA T4 case study session for students to
better prepare for the examination was
conducted by Ms Cindy Yeung, Manager,
Finance Department of Cable TV and
Mr Jasper Chung ACMA, management
accountant, Richemont Asia Pacific.
Study materialsThe division continues to offer book-
purchasing service on the official learning
materials which include the CIMA learning
system, exam practice kit and revision card
published by CIMA Publishing with Elsevier.
Students were also encouraged to us the
online study modules cimastudy.com
Practical experience requirement workshop A practical experience requirement
workshop was organised on 18 May and
26 August. The workshop helped students
to understand the requirements of work
experience required for membership and
the procedure needed when applying
for membership. Mr Richard Kenworthy,
Divisional Vice President and Mr Henry
Lau, ACMA were invited to share their
experience with all CIMA strategic level
students.
CIMA Hong Kong Annual Review 2010
08
Activities19 January 2010
Information session on the ‘Professional
programmes in management accounting’
jointly offered by CIMA and CUHK SCS.
25 January 2010
Career talk for the University of Hong
Kong students.
26 January 2010
CIMA roundtable discussion for Human
Resources professionals on ‘Recruiting
finance and accounting talent’.
27 January 2010
Career talk for Lingnan University students.
27 January 2010
Information session on the ‘Professional
programmes in management accounting’
jointly offered by CIMA and CUHK SCS.
29 January 2010
Career talk at Caritas in Tsuen Wan and
Fanling.
Scholarship awardsCIMA scholarships have been awarded
to the City University of Hong Kong,
Hong Kong Baptist University, Hong Kong
Community College, Hong Kong Institute
of Vocational Education, Lingnan University,
The Hong Kong Polytechnic University and
The University of Hong Kong for students
achieved the highest scores in ‘Cost
Accounting’ or ‘Management Accounting’
subjects in their courses. Representatives
from CIMA were invited to join the
following prize presentation ceremony.
19 March 2010
Staff attended the City University of Hong
Kong scholarship and prize presentation
ceremony.
25 March 2010
Staff attended the scholarship presentation
of Hong Kong Polytechnic University.
12 April 2010
The Lingnan University scholarship
presentation ceremony by Mr Richard
Kenworthy, Divisional Vice President.
24 April 2010
Mr Leo Cheung, Divisional President,
CIMA Hong Kong attended the
innovative entrepreneur of the year 2010
opening ceremony 2010
organised by the City Junior Chamber
.
19 June 2010
The IVE - accounting software applications
competition for secondary school students
prize presentation ceremony by Ms Irene
Cheng, divisional council member.
12 July 2010
Staff attended the City University of Hong
Kong’s prize presentation ceremony.
17 July 2010
The MEP final presentation day by Ms Amy
Lam, divisional council member.
29 November 2010
Staff attended the 2010 Prize Presentation
Ceremony of the Faculty of Business and
Economics, the University of Hong Kong.
Promoting and developing the science of management accounting
CIMA Hong Kong Annual Review 2010
26 May 2010
CIMA-CUHK SCS information session on
management accounting programmes.
12 June 2010
CIMA booth at HKUSPACE open day.
18 June 2010
CIMA booth and seminar at the HKTDC
entrepreneur day at the Hong Kong
Convention and Exhibition Centre.
19 June 2010
Global Business Challenge (GBC) Hong
Kong regional final.
The Global Business Challenge (GBC) is a
competition for all full time undergraduates
of Hong Kong university degree programs.
It is designed to provide an opportunity for
students to analyse and evaluate a special
business situation and apply management
accounting concepts. It also helps CIMA
in promoting the science of management
accounting to next generation of business
leaders. In Hong Kong the competition
started in February 2010, it attracted more
than 140 teams from all universities.
17 March 2010
Information session on the ‘Professional
programmes in management accounting’
jointly offered by CIMA and CUHK SCS.
18 March 2010
Staff participated in the ‘networking day
with the business professionals’ at Lingnan
University.
25 March 2010
Staff attended the ‘Perfect match-
graduate recruitment and employer
branding’ at the City University of Hong
Kong.
1 April 2010
Career seminar for HKU SPACE Community
College students.
15 April 2010
Career talk for Hong Kong College of
Technology students.
22 April 2010
CIMA – CUHK SCS information session on
management accounting programmes.
6 May 2010
Career seminar for CUHK SCS students.
7 – 10 May 2010
Global Business Challenge press conference
at The Chinese University of Hong Kong.
12 May 2010
Career talk for Caritas students.
1 February 2010
Career talk for the Hong Kong Polytechnic
University students.
2 February 2010
Career talk for the Open University of
Hong Kong students.
3 February 2010
Information session on the Certificate in
Islamic Finance programme jointly offered
by CIMA and HKU SPACE.
6 February 2010
Seminar on ‘Career beyond accounting’ at
the Hong Kong Convention and Exhibition
Centre.
8 February 2010
Career talk for the Hong Kong University
of Science and Technology students.
9 February 2010
Career talk for the City University of Hong
Kong students.
24 February 2010
Information session on the Certificate in
Islamic Finance programme jointly offered
by CIMA and HKU SPACE.
2 March 2010
Career talk for the Hong Kong Polytechnic
University students.
11 March 2010
CIMA participated career talk and
exhibition at the University of Hong Kong.
09 An overview
Promoting and developing the science of management accounting continued
CIMA Hong Kong Annual Review 2010
28 September 2010
CIMA booth at A-Performers MBA and
Postgraduate Fair at the Worldwide
Executive Centre.
5 October 2010
Information seminar on professional
programmes in management accounting
jointly organised by CIMA-CUHK SCS.
26 October 2010
Information session at City University of
Hong Kong conducted by Mr Kingston Ho,
Divisional Council member.
3 November 2010
CMGA information seminar at HKU SPACE.
27 November 2010
CMGA information seminar at HKU SPACE.
16 December 2010
CMGA information seminar at HKU SPACE.
5 August 2010
CIMA Global Business Challenge Global
Final.
The Hong Kong winning team Starlight
from the University of Hong Kong entered
the Global Final at the Taylor’s University
in Kuala Lumpur, Malaysia and competed
with 13 other country finalists from UK,
Ireland, Sri Lanka, India, mainland China,
Malaysia, Pakistan, Singapore, South
Africa,UAE, Philippines, Bangladesh and
Australia. Starlight eventually won the
global final and became world champion
for the competition, it was also the second
time Hong Kong representatives seized the
grand trophy.
28 August 2010
Information seminar on professional
programmes in management accounting
jointly organised by CIMA-CUHK SCS.
6 September 2010
CIMA booth at Hong Kong Careers Fair of
Oxford, Cambridge, LSE, Imperial College
at British Council.
10
Promoting and developing the science of management accounting continued
6 July 2010
Career talk for Manchester Business School
students.
6 July 2010
CIMA participated in the A-performers
Greater China talent management summit
2010.
7 July 2010
CMGA information seminar at HKU SPACE.
17 July 2010
Career talk for City University of Hong
Kong students.
29 July 2010
Career seminar for Bradford University
students.
30 July 2010
CIMA-HKU SPACE information seminar
on Certificate of Islamic Finance joint
programmes.
CIMA Hong Kong Annual Review 2010
An overview
11
21 January 2010
Dr Aidan Goddard, divisional council
member, CIMA Hong Kong attended
the budget consultation group meeting
organised by the Financial Services and
the Treasury Bureau.
21 January 2010
Mr Kenneth Chan, CIMA council member
attended the HKICS annual dinner.
21 January 2010
Staff attended the thematic workshops in
Asian financial forum 2010 at the Hong
Kong Convention and Exhibition Centre.
26 January 2010
Mr Leo Cheung, Divisional President,
Mr Richard Kenworthy, Divisional Vice
President, and Mr Kenneth Chan, CIMA
council member and staff attended the
Anthony Chan Co. annual dinner.
28 January 2010
Dr Aidan Goddard FCMA, Mr Steve Au
Yeung FCMA, Ms Irene Cheng ACMA, Dr
Artie Ng FCMA and Mr KY Wong FCMA
participated in the budget consultation
group meeting.
1 February 2010
Mr Paul Chan, Divisional Deputy President
attended the conference on 'Best practices
in internal audit' organised by Pacific
Conference and supported by CIMA.
1 February 2010
Staff attended HKIHRM/SCMP People
Management Awards 2009 Presentation
Ceremony luncheon.
4 March 2010
Mr Leo Cheung, Divisional President
attended the ACCA Hong Kong Spring
Dinner.
5 March 2010
Staff attended the HKU SPACE Community
College 10th anniversary dinner.
11 March 2010
Mr Leo Cheung, Divisional President,
attended the HKICPA spring dinner.
16 March 2010
Staff attended the annual symposium
on risk management organised by
Kornerstone.
18 March 2010
Mr Leo Cheung, Divisional President
and Mr Kenneth Chan, CIMA Council
member attended the Society of Chinese
Accountants & Auditors Spring Dinner
2010.
24 March 2010
Mr Richard Kenworthy, Divisional Vice
President, attended the scholarship
presentation ceremony and donors’ tea
reception of the Hong Kong Baptist
University.
26 March 2010
Mr Leo Cheung, Divisional President,
attended the AIA annual dinner.
26 March 2010
Dr WS Li, Divisional Council Member,
presented at the CIMA - IBM joint sharing
session on ‘A scorecard management
approach in manufacturing’.
30 March 2010
Dr Aidan Goddard, divisional council
member, attended the briefing on the
white book of Guangzhou international
business development 2010.
15 April 2010
Staff attended the official launch of
HKIHRM HR professional standards gala
dinner.
22 April 2010
Mr Richard Kenworthy, Divisional Vice
President, attended the Hong Kong
Polytechnic University's donors' reception.
26 April 2010
Mr Leo Cheung, Divisional President,
attended the ACCA 60th anniversary
cocktail reception.
30 April 2010
Dr Artie Ng, divisional council member,
attended the seminar on 'Innovation and
technology policy for Hong Kong’ organised
by the Economic Analysis Division,
Economic Analysis and Business Facilitation
Unit, Financial Secretary’s Office, HKSAR.
Other divisional engagements
CIMA Hong Kong Annual Review 2010
Other divisional engagements continued
12
1 May 2010
Staff attended the 45th anniversary
celebration opening ceremony of the
School of Continuing and Professional
Studies, Chinese University of Hong Kong.
10 May 2010
Staff attended the sharing session from
Mr. Thomas Mehrmann, CEO of Ocean
Park Corporation organised by Bradford
University.
13 May 2010
Ms Amy Lam, divisional council member,
attended the seminar on ‘Transfer
pricing with the State Administration of
Taxation’ organised by the Inland Revenue
Department, HKSAR.
14 May 2010
Staff attended the IBM cognos finance
forum 2010.
26 May 2010
Staff attended the Manchester Business
School seminar on ‘How to turn your
social network into business capital and
assets’ by Professor Gilbert Wong .
31 May 2010
Staff attended the Hong Kong General
Chamber of Commerce cocktail reception
and AGM.
31 May 2010
Mr Leo Cheung, Divisional President
and Mr Damian Yip, Divisional Director,
attended the professional institutions in
Hong Kong cocktail reception organised
by UK Trade & Investment.
3 June 2010
Staff attended the promotional
symposium & luncheon of the 14th CIFIT
and World Investment Forum 2010.
3 June 2010
Staff attended the CIMA-CUHK SCS
Professional Diploma Programme in
Management Accounting graduation
dinner.
11 June 2010
Staff attended KPMG executive breakfast
briefing on IFRS update: impairment and
amortised cost?
11-16 June 2010
Mr Leo Cheung, Divisional President,
attended the Shanghai world expo study
trip organised by Accounting Resource
Centre, CIMA, ACCA, AIA, AWAHK, CGA,
CMA Canada, CPA Australia, IAE, CA, SCAA,
TIHK.
22 June 2010
Mr Leo Cheung, Divisional President
attended the luncheon organised by the
Accounting Resource Centre.
9 July 2010
Staff attended the open day of Caritas.
31 July 2010
Mr Leo Cheung, Divisional Immediate
Past President, attended the innovation
entrepreneur of the year 2010 judging
day
organised by the City Junior Chamber.
19 August 2010
Mr Leo Cheung, Divisional Immediate
Past President attended the innovation
entrepreneur of the year 2010
award
presentation ceremony organized by the
City Junior Chamber.
20 August 2010
Staff attended the 10th anniversary dinner
of IT Accountants Association (ITAA).
15 September 2010
Mr Leo Cheung, Divisional Immediate Past
President, Ms Jackie Ko, Divisional Council
member and Mr Damian Yip, Divisional
Director attended the inauguration
ceremony of The Reanda International
Network.
16 September 2010
Mr Paul Chan, Divisional President and
Mr Damian Yip, Divisional Director of
CIMA Hong Kong attended the CICPA
inauguration ceremony and luncheon.
CIMA Hong Kong Annual Review 2010
Other divisional engagements continued
16 September 2010
Mr Paul Chan, Divisional President attended
The Institute of Financial Accountants’ IFA-
SE inauguration ceremony and dinner.
28 September 2010
Mr Richard Kenworthy, Divisional Deputy
President attended the Annual Dinner of
CMA Canada.
15 October 2010
Staff attended the cocktail reception of
The Manchester Business School Alumni
Association (China)’s AGM.
29 October 2010
Mr Richard Kenworthy, Divisional Deputy
President attended the CPA Congress
2010 in Hong Kong – ‘Navigate the New’
organized by CPA Australia.
2 November 2010
Dr Li Wing Sun, Divisional Vice President,
attended the CGA-Annual Dinner.
6 November 2010
Mr Paul Chan, Divisional President,
attended the Anniversary Banquet 2010 of
the Open University of Hong Kong.
8 November 2010
Mr Richard Kenworthy, Divisional Deputy
President, attended the opening ceremony
of the 'River of Wisdom- Animated Version
of the Riverside Scene at Qingming
Festival' organised by the Leisure and
Cultural Services Department, HKSAR.
10 November 2010
Staff attended the Hong Kong General
Chamber of Commerce’s luncheon.
10 November 2010
Staff attended the HKU SPACE Alumni
Social Enterprises e-Society (SEES)
launching ceremony.
11 November 2010
Staff attended the Congregation of City
University of Hong Kong.
19 November 2010
Staff attended the China Enterprises
Economic Research Study Centre’s
luncheon.
29 November 2010
Staff attended the 2010 Prize Presentation
Ceremony of the Faculty of Business and
Economics, The University of Hong Kong.
1 December 2010
Staff attended the CFO Innovation Asia
Forum.
8 December 2010
Staff attended the 45th Anniversary
Banquet of CUSCS.
10 December 2010
Mr Richard Kenworthy, Divisional Deputy
President, attended the HKIRD Sports
Association’s Annual Dinner.
An overview
13
13 December 2010
Mr Paul Chan, Divisional President attended
the 20th Anniversary Seminar cum Annual
Luncheon of HK College of Technology’s
Information Service Centre of Professional
Studies.
13 December 2010
Mr Paul Chan, Divisional President
attended the HKIHRM’s Annual Luncheon
2010.
CIMA Hong Kong Annual Review 2010
Media coverage
12 January 2010 - CFO Innovation AsiaInterview with Charles Tilley, CIMA Chief Executive on the management accounting and CIMA professional business qualification.
19 January 2010 - Jiu Jik and Jiu Jik onlineInterview with Damian Yip, Divisional Director of CIMA Hong Kong, regarding CIMA Global Business Challenge 2011.
19 February 2010 - Recruit Interview with Damian Yip, Divisional Director of CIMA Hong Kong on changing mindset of accounts and to strengthen management accounting skills.
15 May 2010 - A PlusInterview with Aubrey Joachim, CIMA President on urging management accountants to lead governance change and help companies focus on bigger picture rather than concentrating on technical details in order to provider real information to their bosses and influence strategy.
30 June 2010 - Jiu Jik15 July 2011 - Sing Tao Daily15 July 2011 - Oriental DailyArticle reporting the Global Business Challenge Hong Kong final where students from the University of Hong Kong has won the competition, and is competing with other winners in Malaysia August 2011.
8 July 2010 - MetrodailyInterview with CIMA and the University of Hong Kong School of Professional and Continuing Education (HKU SPACE) on the offering of the first Islamic Finance certificate and advanced certificate courses in Greater China.
10 July 2010 - Talent Management Introduction of CIMA, our professional qualification and course information.
12 August 2010 - MetrodailyAn article interview on CIMA Masters Gateway Exam with Damian Yip, Divisional Director of CIMA Hong Kong and Albert Hung, Associate Head of College of Business and Finance, HKU SPACE.
13 August 2010 - Tai Kung Pao13 August 2010 - Ming Pao13 August 2010 - Metrodaily13 August 2010 - Headline13 August 2010 - Sing Tao Daily13 August 2010 - Sing PaoPress conference held the day before regarding students from HKU winning the CIMA 2010 Global Business Challenge Grand final.
6 September 2010 - HK Economic Times Interview with Damian Yip, Divisional Director of CIMA Hong Kong on how MBA holders can help formulating strategies and quantify performance via pursuing the CIMA professional qualification.
17 September 2010 - Mingpao JumpArticle on the co-branded professional diploma programmes jointly organized by CIMA and the School of Continuing and Professional Studies, The Chinese University of Hong Kong (CUHK SCS).
28 September 2010 - AM730An interview on professional diploma programmes with Damian Yip, Divisional Director of CIMA Hong Kong and Dr. Brandon Ng, Associate Director of CUHK SCS.
19 October 2010 - The StandardAn article interview with Damian Yip (CIMA) and Albert Hung (HKU SPACE) on 'Getting to the heart of business decision making'.
142010 - An overview
CIMA Hong Kong Annual Review 2010
Meetings attended by members of the divisional council(January 2010 to December 2010)Name Divisional Executive Chan Kai Chi Kenneth 6/7 5/5 Chan Kin Lok Paul 3/7 3/5 Cheung Wai Yi Rachel 3/3 Cheung Wan Yin Leo 6/7 5/5 Chui Francis 1/3Goddard Aidan 5/7Ho King Lam Kingston 7/7 4/5Kenworthy Richard 6/7 3/5Ko Yung Lai Jackie 2/3Lam Yuen May Amy 6/7 2/2Li Wing Sun 5/7 3/3
Members and students services committeeChairman Amy Lam Vice Chairman Artie Ng Nicholas Allard Jasper Chung Rachel Cheung Francis Chiu Rebecca Chu Aidan Goddard
Past divisional presidents
R Smith 1973-1974Joseph M Lai 1974-1975 K K Yeung 1975-1976William Parker 1976-1978 R Smith 1978-1979 Joseph M Lai 1979-1980P D Morgan 1980-1981 H K Poon 1981-1982 W G N Manning 1982-1983Kenneth K C Chan 1983-1984 Patrick K C Yeung 1984-1985P M Kam 1985-1987Julian C W Leung 1987-1988 W G N Manning 1988-1989 Stanford Miller 1989-1992Michael Y L Chan 1992-1993
Staff in Hong Kong (as of May 2010)Divisional Director Damian Yip Senior Executive, Member & Student Services Yannie Lau Senior Executive, Business Operations Cherry Chu Marketing & Development Manager Scott Lee
Cameron HonJackie KoAlan LamLeong Khai KongSamuel Ng Andy Tsang Ng Wai Cheong ArtieWong Suk Fun
15
Divisional council, committee membersand representatives
Ellena Y K Au 1993-1994Jimmy K W Pun 1994-1995Louis N H Lee 1995-1996Simon T W Leung 1996-1997 Peter W M Wong 1997-1998Anthony N T Chan 1998-1999 Roger M Y Ho 1999-1999 (Dec) Alan C M Wong 2000-2001Teddy T M Iu 2001-2002 Peter C W Choy 2002-2004 Paul Yeung 2004-2005Albert Y K Law 2005-2006 (Apr)Peter C W Choy 2006-2007 Michael Y L Chan 2007-2009Leo WY Cheung 2009-2010
Summ
ary accounts
Name Divisional Executive Ng Wai Cheong Artie 6/7To Man Chau Gordon 1/7Tsui Hung Sang Hudson 5/7Yeung Chun Pong Paul 5/7Luk Wai Leong Walton 5/7
Honorary OfficersDivisional President Paul ChanDivisional Deputy President Richard Kenworthy Divisional Vice President Li Wing SunDivisional Immediate Past President Leo Cheung
CIMA Hong Kong Annual Review 2010
16
Independent auditor's report to the members of the Chartered Institute of Management Accountants (Hong Kong division)
ANDREW MA DFK (CPA) LIMITED
Certified Public Accountants
YAU WAI HING, STEPHEN
Practising Certificate No. P03392
Hong Kong, 28 February 2011
We have audited the financial statements of the Division set
out on pages 17 to 28, which comprise the balance sheet as at
December 31, 2010, and the income and expenditure account,
statement of changes in head office funds and statement of
cash flows for the year then ended, and a summary of significant
accounting policies and other explanatory notes.
Divisional council's responsibility for the financial
statements The Institute's constitution and by-laws require the
Divisional Council to prepare financial statements that give a true
and fair view in accordance with Hong Kong Financial Reporting
Standards issued by the Hong Kong Institute of Certified Public
Accountants, and for such internal control as the Divisional Council
determine is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due
to fraud or error.
Auditors' responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit and to report our opinion solely
to you, as a body, in accordance with the Institute's constitution
and by-laws, and for no other purpose. We do not assume
responsibility towards or accept liability to any other person for
the contents of this report.
We conducted our audit in accordance with Hong Kong
Standards on Auditing issued by the Hong Kong Institute of
Certified Public Accountants. Those standards require that we
comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements.
The procedures selected depend on the auditor's judgment,
including the assessment of the risks of material misstatement
of the financial statements, whether due to fraud or error. In
making those risk assessments, the auditor considers internal
control relevant to the Division's preparation of financial
statements that give a true and fair view in order to design audit
procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of
the Division's internal control. An audit also includes evaluating
the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by the Divisional
Council, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements give a true and fair view
of the state of the Division's affairs as at December 31, 2010,
and of its surplus and cash flows for the year then ended in
accordance with Hong Kong Financial Reporting Standards.
CIMA Hong Kong Annual Review 2010
2010 2009
Note HK$ HK$
Non-current assets
Property, plant and equipment 3 -- 48,586
Current assets
Inventories 4 40,327 23,513
Accounts receivable 5 25,743 56,741
Amount due from Head Office 6 72,338 --
Deposits and prepayments 274,149 305,149
Cash and bank balances 458,850 270,546
871,407 655,949
Current liabilities
Accrued expenses 48,381 42,267
Net current assets 823,026 613,682
823,026 662,268
Financed by :
Head Office funds 823,026 662,268
Approved by the Divisional Council
Treasurer Divisional President Divisional Director
See accompanying notes
17
The Chartered Institute of Management Accounts (Hong Kong division)Balance sheet As at 31 December 2010 (Expressed in Hong Kong dollars)
Summ
ary accounts
CIMA Hong Kong Annual Review 2010
18
2010 2009 HK$ HK$ Income Subvention from Head Office 2,025,937 952,004Workshop and seminar income, net of seminar wxpenses 9,275 78,843Bank interest income -- 52Sundry income 79,019 81,160 2,114,231 1,112,059
Expenses Advertising and promotions 411,392 220,998 Auditors' remuneration 40,000 36,000 Bank charges 930 3,513 Building management fees 82,878 82,878 Depreciation 48,586 48,586 Donations -- 15,000 Insurance 20,400 22,591 Members and corporate affairs 252,295 212,349 Miscellaneous 88,059 119,977 Office supplies -- 31,995 Photocopying 35,916 14,609 Postage and courier 21,235 28,081 Printing and stationery 10,221 9,390 Professional fees 53,440 7,260 Property, plant and equipment written off -- 6,470 Rent, rates and air-conditioning 770,961 775,600 Salaries and allowances 29,350 24,200 Staff training 21,611 24,388 Telecommunications 22,875 25,554 Travelling - local 23,770 28,014 Travelling - overseas 18,554 40,886 Water, electricity and gas -- 16,101 1,952,473 1,794,440 Surplus/(Deficit) for the year 161,758 (682,381)
Total comprehensive income transferred to Head Office Funds 161,758 (682,381) See accompanying notes
The Chartered Institute of Management Accounts (Hong Kong division)Income and expenditure accountYear ended 31 December 2010 (Expressed in Hong Kong dollars)
CIMA Hong Kong Annual Review 2010
19
The Chartered Institute of Management Accounts (Hong Kong division)Statement of changes in head office fundsYear ended 31 December 2010 (Expressed in Hong Kong dollars)
The Past President General General Award Fund Reserve Fund Total HK$ HK$ HK$ HK$
Balance at December 31 2008 1,338,149 5,000 3,000 1,346,149
Fund applied to award student for the year -- -- (1,500) (1,500)
Total comprehensive income for the year (682,381) -- -- (682,381)
Balance at December 31 2009 655,768 5,000 1,500 662,268
Fund applied to award student for the year -- -- (1,000) (1,000)
Total comprehensive income for the year 161,758 -- -- 161,758
Balance at December 31 2010 817,526 5,000 500 823,026
Summ
ary accounts
CIMA Hong Kong Annual Review 2010
20
2010 2009 HK$ HK$
Net cash inflow/(outflow) from operating activities (see note below) 189,304 (475,409)
Cash from/(used in) investing activitiesBank interest income -- 52 Purchase of property, plant and equipment -- (6,470)
Net cash used in investing activities -- (6,418)
Cash from/(used in) financing activitiesDecrease in the past president reward fund (1,000) (1,500)
Net cash used in financing activities (1,000) (1,500)
Net increase/(decrease) in cash and cash equivalents 188,304 (483,327)
Cash and cash equivalents at beginning of the year 270,546 753,873
Cash and cash equivalents at end of the year 458,850 270,546
Analysis of the balances of cash and cash equivalentsCash and bank balances 458,850 270,546
NOTE TO THE STATEMENT OF CASH FLOWS
Reconciliation of surplus/(deficit) to net cash inflow/(outflow) from operating activities :
Surplus/(Deficit) for the year 161,758 (682,381)Adjustments for :Bank interest income -- (52)Depreciation 48,586 48,586 Property, plant and equipment written off -- 6,470
Operating surplus/(deficit) before working capital changes 210,344 (627,377)
(Increase)/Decrease in inventories(Increase)/Decrease in accounts receivable 30,998 7,182 (Increase)/Decrease in amount due from Head Office (72,338) 257,315 (Increase)/Decrease in deposits and prepayments 31,000 (53,162)Increase/(Decrease) in accounts payable -- (47,957)Increase/(Decrease) in accrued expenses 6,114 (11,795)
Net cash inflow/(outflow) from operating activities 189,304 (475,409)
The Chartered Institute of Management Accounts (Hong Kong division)Statement of cash flowsYear ended 31 December 2010 (Expressed in Hong Kong dollars)
CIMA Hong Kong Annual Review 2010
21
The Chartered Institute of Management Accounts (Hong Kong division)Notes to the financial statementYear ended 31 December 2010 (Amounts expressed in Hong Kong dollars)
1. General information
The Chartered Institute of Management Accountants was
incorporated in the United Kingdom under a Royal Charter and
operates the Hong Kong Division at the registered address at
Suites 1414-1415, 14/F., Jardine House, Central, Hong Kong.
The principal activities of the Hong Kong Division include,
inter alia, the promotion of the science of management
accountancy and providing member services and student
supports by organising networking events and seminars.
2. Significant accounting policies
The financial statements have been prepared in accordance
with the Hong Kong Financial Reporting Standards (HKFRSs)
covering the Hong Kong Accounting Standards (HKASs) issued
by the Hong Kong Institute of Certified Public Accountants.
Significant accounting policies adopted by the Division in
preparing the financial statements are set out below.
a) Basis of preparation of the financial statements
The financial statements are prepared under the historical
cost convention, as modified where appropriate by
revaluation of certain financial assets and financial
liabilities.
The accounting policies used in the financial statements
are consistent with those followed in the preparation of
the financial statements for the year ended December 31,
2009, except that in the current year, the Division has
applied for the first time the following amendments that
are effective for the current year and are relevant to the
operations of the Division:
HKFRSs (Amendments Improvements to HKFRSs 2009
The improvements to HKFRSs 2009 comprise a number of
minor changes but which have not resulted in any change
of accounting policies in the context of the Division.
The Division has not early applied the following standards
and amendments which have been issued but are not yet
effective:
HKFRSs (Amendments) Improvements to HKFRSs 2010
HKFRS 9 Financial instruments (relating to
the classification and measurement
of financial assets and financial
liabilities)
HKAS 24 (Revised) Related party disclosures
The Divisional Council anticipates that these standards
and amendments not yet applied will have no material
impact on the Division's results of operations and financial
position.
b) Foreign currency transactions
The Division maintains its books of account in its
functional currency (i.e. the currency of the primary
economic environment in which the entity operates).
Foreign currency transactions are translated during the
year at the rates of exchange ruling at the dates of the
transactions. Monetary assets and liabilities denominated
in foreign currencies at the reporting date are retranslated
at the rates of exchange ruling at that date. Non-monetary
items carried at fair value that are denominated in foreign
currencies are retranslated at the rates prevailing on the
date when the fair value was determined. Non-monetary
items that are measured in terms of historical cost in a
foreign currency are not retranslated.
Exchange gains or losses arising on the retranslation of
monetary items are included in the income and expenditure
account. Exchange differences arising on the retranslation
of non-monetary items carried at fair value are included
in the income and expenditure account except for
differences arising on the retranslation of non-monetary
items in respect of which gains or losses are recognised
in other comprehensive income, in which cases, the
exchange differences are also recognised directly as other
comprehensive income under a reserve account in Head
Office Funds separate from General Funds.
c) Financial instruments
A financial instrument is defined as any contract that gives
rise to a financial asset of one entity and a financial liability
or equity instrument of another entity.
Summ
ary accounts
CIMA Hong Kong Annual Review 2010
22
The Chartered Institute of Management Accounts (Hong Kong division)Notes to the financial statement (continued)Year ended 31 December 2010 (Amounts expressed in Hong Kong dollars)
Financial assets/liabilities are recognised in the balance
sheet when the Division becomes a party to the
contractual provisions of the instrument.
A) Measurement of financial assets
A financial asset is measured at its fair value upon initial
recognition. The measurement of financial assets subsequent
to initial recognition relating to loans and receivables, which
are the financial assets relevant to the Division, are as
follows:
Loans and receivables are non-derivative financial assets
with fixed or determinable payments that are not quoted
in an active market, and that are created by the Division by
providing goods, service or money directly to a receivable.
These include trade receivables, time deposits, loans and
other receivables.
Loans and receivables are recognised in the balance sheet
under current assets, except for maturities greater than
12 months after the reporting date which are classified
as non-current assets. All purchases or sales of financial
assets that require delivery of assets within the time frame
established by regulation or convention in the marketplace,
are recognised or derecognised on a trade date basis.
As at the reporting date, loans and receivables are carried
at amortized cost using the effective interest method, less
any identified impairment losses. An impairment loss is
recognised in the income and expenditure account when
there is objective evidence that the asset is impaired, and
is measured as the difference between the asset's carrying
amount and the present value of the estimated future
cash flows discounted at the original effective interest
rate. Impairment losses are reversed in subsequent periods
when an increase in the asset's recoverable amount can
be related objectively to an event occurring after the
impairment was recognised, subject to a restriction that the
carrying amount of the asset at the date the impairment is
reversed does not exceed what the amortized cost would
have been had the impairment not been recognised.
B) Measurement of financial liabilities
A financial liability is measured at its fair value upon initial
recognition. Financial liabilities relating to borrowings
and payables, which are the financial liabilities relevant
to the Division, are measured at amortised cost using the
effective interest rate method as at the reporting date
subsequent to initial recognition.
Transaction costs that are directly attributable to the
acquisition or issue of the above types of financial assets
and financial liabilities are added to or deducted from the
fair value of the financial assets or financial liabilities, as
appropriate, on initial recognition.
d) Property, plant and equipment and depreciation
Property, plant and equipment are stated at cost less
accumulated depreciation and impairment losses, if
necessary.
All capital expenditure up to the unit value of HK$7,000
are written off in the year of acquisition.
Depreciation is provided on a straight line basis on the
cost of property, plant and equipment and calculated at
the following rates per annum based on their respective
estimated useful lives:
Leasehold improvements Over the terms of the lease
Furniture and fixtures 100%
Hi-tech and other office
equipment (including
computer system) 33-1/3%
e) Inventories
Inventories are valued at the lower of cost and net
realizable value. Cost is calculated using the first-
in first-out basis and comprises all costs of purchase,
costs of conversion and other costs incurred in bringing
the inventories to their present location and condition.
Net realizable value is the estimated selling price at
which inventories can be sold in the normal course
of business after allowing for the estimated costs of
realization.
CIMA Hong Kong Annual Review 2010
23
The Chartered Institute of Management Accounts (Hong Kong division)Notes to the financial statement (continued)Year ended 31 December 2010 (Amounts expressed in Hong Kong dollars)
f) Impairment of assets
Assets that have an indefinite useful life are not subject
to amortization, but are at least tested annually for
impairment and are reviewed for impairment whenever
events or changes in circumstances indicate that the
carrying amount may not be recoverable. Assets that are
subject to amortization are also reviewed for impairment
whenever events or changes in circumstances indicate that
the carrying amount may not be recoverable or that an
impairment loss previously recognised no longer exists or
may have decreased.
If the recoverable amount of an asset is estimated to
be less than its carrying amount, the carrying amount
of the asset is reduced to its recoverable amount.
Impairment loss is recognized as an expense immediately,
unless the relevant asset is carried at revalue amount,
in which case the impairment loss is firstly charged
against other comprehensive income to the extent
of the amount held in the revaluation reserve in the
Head Office Funds with any excess recognized as an
expense.
Where an impairment loss subsequently reverses, the
carrying amount of the asset is increased to the revised
estimate of its recoverable amount, which is restricted to
the carrying amount that would have been determined had
no impairment loss been previously recognized for the asset.
A reversal of an impairment loss is recognized as income
immediately, unless the relevant asset is carried at a revalue
amount, in which case the reversal of the impairment
loss is treated as a revaluation increase under other
comprehensive income.
g) Operating leases
Lease payments under operating leases are accounted for
in the income and expenditure account on a straight line
basis over the period of the respective leases.
h) Revenue recognition
Revenue is recognized when it is probable that the
economic benefits associated with the transaction will
flow to the Division and the amount of the revenue can be
measured reliably.
i) Subvention from head office is recognised when funds
are received for expenses approved by the Division's
Head Office.
ii) Workshop and seminar income is recognized upon
completion of training or services rendered.
iii )Interest income is recognized on an accrual basis that
takes into account the effective yield on the assets.
i) Cash equivalents
Cash equivalents are short-term, highly liquid investments
that are readily convertible into known amounts of cash
and are subject to an insignificant risk of changes in value.
For the purpose of the statement of cash flows, cash
equivalents also include advances from banks repayable
within three months from the date of the advance.
j) Provisions
Provisions are recognized when the Division has a present
legal or constructive obligation as a result of past events, it
is probable that an outflow of resources will be required to
settle the obligation, and a reliable estimate of the amount
can be made. Where the Division expects a provision
to be reimbursed, the reimbursement is recognized as
a separate asset when the reimbursement is virtually
certain.
Where it is not probable that an outflow of economic
benefits will be required, or the amount cannot be
estimated reliably, the obligation is disclosed as a
contingent liability, unless the probability of outflow of
economic benefits is remote.
k) Related parties
Two parties are considered to be related if one party has
the ability directly or indirectly to control the other party or
exercise significant influence over the other party in making
financial and operating decisions. Parties are also considered to
be related if they are subject to common control or common
significant influence, or if they are key management personnel
of the Division or its head office, or if they are close members of
the related parties.
Summ
ary accounts
CIMA Hong Kong Annual Review 2010
24
The Chartered Institute of Management Accounts (Hong Kong division)Notes to the financial statement (continued)Year ended 31 December 2010 (Amounts expressed in Hong Kong dollars)
3. Property, plant and equipment
Leasehold Furniture and improvements fixtures Total HK$ HK$ HK$ HK$
2010 At cost At beginning and end of the year 268,199 38,094 84,313 390,606
Accumulated depreciation At beginning of the year 219,613 38,094 84,313 342,020 Charges for the year 48,586 -- -- 48,586
At end of the year 268,199 38,094 84,313 390,606
Net book value At end of the year -- -- -- --
2009 At cost At beginning of the year 268,199 38,094 84,313 390,606 Additions -- -- 6,470 6,470 Written off -- -- (6,470) (6,470)
At end of the year 268,199 38,094 84,313 390,606
Accumulated depreciation At beginning of the year 171,027 38,094 84,313 293,434 Charges for the year 48,586 -- -- 48,586
At end of the year 219,613 38,094 84,313 342,020
Net book value At end of the year 48,586 -- -- 48,586
4. Inventories
2010 2009 HK$ HK$ At cost Study books and materials 40,327 23,513
CIMA Hong Kong Annual Review 2010
25
The Chartered Institute of Management Accounts (Hong Kong division)Notes to the financial statement (continued)Year ended 31 December 2010 (Amounts expressed in Hong Kong dollars)
5. Account receivables The following is an aged analysis of accounts receivable net of impairment losses at the reporting date : 2010 2009 HK$ HK$
Not past due 25,743 56,741
No interest is charged on the accounts receivable. The Divisional Council believes that no impairment provision is necessary in respect of these balances which, according to past experience, are considered fully recoverable. The Division does not hold any collateral over these balances.
6. Amount due from Head Office This account is unsecured, interest free and has no fixed terms of repayment.
7. Taxation Hong Kong Profits Tax has not been provided for in these financial statements as the Division has no assessable profits during the year.
8. Operating leases Rental payments in respect of leasehold land and buildings under operating leases for the year :
2010 2009 HK$ HK$
a) Rental payments in respect of premises under operating leases for the year 741,540 741,540 b) At the reporting date, the Division's future minimum lease payments under non-cancellable operating leases are payable as follows : - within one year 247,180 741,540 - in the second to fifth year inclusive -- 247,180
247,180 988,720
9. Related party transactions Certain part of the Division's operation was represented by transactions with related parties. These financial statements reflect the effects of those transactions on bases determined between the Division and its related parties.
During the year, the Division had the following material transactions with its related parties :
2010 2009 HK$ HK$
Subvention from Head Office 2,025,937 952,004 Sales of books to Shanghai Division of the Institute at cost 8,099 18,068
At end of the year, the Company also had certain account balances with its related companies or parties as stated in the preceding Note 6.
Summ
ary accounts
CIMA Hong Kong Annual Review 2010
26
The Chartered Institute of Management Accounts (Hong Kong division)Notes to the financial statement (continued)Year ended 31 December 2010 (Amounts expressed in Hong Kong dollars)
10. Critical accounting judgments and key sources of estimation uncertainty In the process of applying Division's accounting policies, which are described in note 2 above, management has made various estimates and judgments (other than those involving estimates) based on past experience, expectations of the future and other information. The key source of estimation uncertainty and the critical accounting judgments that can significantly affect the amounts recognised in the financial statements are set out below.
Depreciation of property, plant and equipment The Division reviews the useful lives and residual value of the property, plant and equipment periodically based on the conditions
of the assets and other regulatory requirements. If the estimates of useful lives for the assets are revised or there is a change in the useful lives, the amount of depreciation expenses recorded in future periods will change. Inventories
Management estimates the net realisable value for inventories based primarily on the latest invoice prices and current market conditions. The Division carries out an inventory review on a product-by-product basis at each reporting date and makes provision for impairment on obsolete and slow-moving items or write-off or write-down inventories to net realisable value.
Estimate of fair value of financial instruments The book values of financial assets and financial liabilities relevant to the Division are assumed to approximate their fair values.
11. Fund management
The Division's objectives when managing funds from head office are : a) To safeguard the Division's ability to continue as a going concern; b) To support the Division's membership retention and growth; and c) To provide funds for the purpose of strengthening the Division's risk management capability.
The Division regularly reviews and manages its fund requirements to ensure the Division's objectives are met taking into account of its current and future strategies.
The Division is not subject to either internally or externally imposed capital requirements.
12. Financial risk management The Division has classified its financial assets in the following category :
2010 2009 HK$ HK$
Loans and receivables
Accounts receivable 25,743 56,741 Amount due from Head Office 72,338 -- Deposits and prepayments 274,149 305,149 Cash and bank balances 458,850 270,546 831,080 632,436
CIMA Hong Kong Annual Review 2010
27
The Chartered Institute of Management Accounts (Hong Kong division)Notes to the financial statement (continued)Year ended 31 December 2010 (Amounts expressed in Hong Kong dollars)
The Division has classified its financial liabilities in the following category :
2010 2009 HK$ HK$
Financial liabilities at amortised cost
Accrued expenses 48,381 42,267 All financial instruments are carried at amounts not materially different from their fair values at the reporting date.
The Division is exposed to credit risk, liquidity risk and market risk arising in the normal course of its activities in respect of its
financial instruments. The Division's risk management objectives, policies and processes mainly focus on minimizing the potential adverse effects of these risks on its financial performance and position by closely monitoring the individual exposure. a) Credit risk The Division's credit risk is primarily attributable to accounts receivable and amount due from Head Office. The maximum
exposure to credit risk in the event of the counterparties' failure to perform their obligations as at the reporting date in relation to each class of recognised financial assets is the carrying amount of those assets as stated in the balance sheet. In order to minimize the credit risk, the Divisional Council has reviewed the recoverable amount of each individual receivable at each reporting date to ensure that adequate impairment losses are made for irrecoverable amounts. Summary quantitative data
2010 2009 HK$ HK$
Accounts receivable 25,743 56,741 Amount due from Head Office 72,338 -- 98,081 56,741
The Division has no significant concentration of credit risk.
b) Liquidity risk Liquidity risk is the risk that funds will not be made available to meet liabilities as they fall due. The Division's policy is to
regularly monitor its liquidity requirements to ensure that sufficient reserves of cash, credit facilities and/or financial support are maintained.
The following table details the remaining contractual maturities at the reporting date of the Division's non-derivative financial
liabilities and the earliest date the Division can be required to pay.
Summary quantitative data 2010 2009 HK$ HK$
Within 1 year or on demand Accrued expenses 48,381 42,267
The Division has no significant concentration of liquidity risk.
Summ
ary accounts
CIMA Hong Kong Annual Review 2010
28
c) Market risk Market risk is the risk arising from movements in market variables such as interest rates.
Interest rate risk
The Division's exposure to cash flow interest rate risk arises mainly from its deposits with bank and the exposure is considered not significant.
Summary quantitative data
2010 2009 HK$ HK$ Floating rate financial assets Bank balances 404,761 255,107
13. Comparative figures
Certain comparative figures have been reclassified to conform with the current year's presentation.
14. Approval of the financial statements The financial statements were approved and authorized for issue by the Divisional Council on 1 March 2011.
The Chartered Institute of Management Accounts (Hong Kong division)Notes to the financial statement (continued)Year ended 31 December 2010 (Amounts expressed in Hong Kong dollars)
Summ
ary accounts
CIMA Hong Kong Annual Review 2010
Co
ntact details
29
CIMA AustraliaSuite 1305109 Pitt StreetSydney, NSW 2000T. +61 (0)2 9376 9900F. +61 (0)2 9376 9905E. [email protected]
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CIMA ChinaShanghai OfficeUnit 1508A15th floor of AZIA Center1233 Lujiazui Ring RoadPudong, Shanghai, 200120T. +86 (0)21 6160 1558F. +86 (0)21 6160 1568E. [email protected]
Beijing Office5th Floor, China Life Tower16 Chaoyangmenwai AvenueBeijing 100020Hotline. 400 820 4080E. [email protected]
Shenzhen OfficeRoom 55, 16/F, Citic City PlazaShennan Road Central, Shenzhen, 518031 P.R.ChinaT. +86 (0)755 3330 5150F. +86 (0)755 3330 5127E. [email protected]
Chongqing OfficeRoom 1202, Metropolitan TowerNo. 68 Zourong RoadYuzhong DistrictChongqing, 400010T. +86(0)21 63713538F. +86(0)21 63816175E. [email protected]
CIMA Hong KongSuites 200520th Floor, Tower OneTimes Square, 1 Matheson StreetCauseway Bay, Hong KongT. +852 2511 2003F. +852 2507 4701E. [email protected]
CIMA IndiaUnit 1-A-1, 3rd FloorVibgyor TowersC-62, G BlockBandra Kurla ComplexBandra (East), Mumbai – 400 051T. +91 22 42370100F. +91 22 42370109E. [email protected]
CIMA MalaysiaLots 1.03b & 1.05 Level 1KPMG TowerFirst Avenue, Bandar Utama47800 Petaling JayaSelangor Darul EhsanT. +60 (0) 3 77 230 230F. +60 (0) 3 77 230 231E. [email protected]
CIMA Middle EastOffice E01, 1st Floor, Block 3PO Box 502221Dubai Knowledge VillageAl Sofouh RoadDubai, UAET. +9714 4347370F. +9714 4341998E. [email protected]
CIMA PakistanNo. 201 2nd Floor, Business ArcadePlot No. 27-A Block-6 P.E.C.H.S.Shahra-e-FaisalKarachiT. +92 21 3432 2387F. +92 21 3432 2390E. [email protected]
CIMA Republic of IrelandBlock E, 5th FloorIveagh CourtHarcourt StreetDublin 2T. +353 (0) 1 6430400F. +353 (0) 1 6430401E. [email protected]
CIMA Singapore51, Goldhill Plaza #08-02Singapore 308900T. +65 6535 6822F. +65 6534 3992E. [email protected]
CIMA South Africa1st Floor, South West Wing198 Oxford RoadIllovo, JohannesburgPO Box 745Northlands 2116T. +27 (0)11 788 8723F. +27 (0)11 788 8724E. [email protected]
CIMA Sri Lanka356 Elvitigala MawathaColombo 5T. +94 (0)11 250 3880F. +94 (0)11 250 3881E. [email protected]
CIMA UK26 Chapter StreetLondon SW1P 4NPT. +44 (0)208 849 2251F. +44 (0)207 663 5442E. [email protected]
CIMA ZambiaPhysical:6053 Sibweni RoadNorthmead, LusakaPostal:PO Box 30640, LusakaT. +260 1 290 219F. +260 1 290 548E. [email protected]
CIMA ZimbabwePhysical:6th Floor Michael House62 Nelson Mandela AvenueHararePostal:PO Box 3831, HarareT. +263 (0)4 708 600 or 250745F. +263 (0)4 708 600E. [email protected]
Contact details
CIMA Hong Kong Annual Review 201024 - 25 October 2011 | Cape Town SACIMA World Conference 2011
Chartered Institute of Management Accountants
CIMA Hong KongSuite 2005, Tower One, Times Square,1 Matheson Street,Causeway Bay,Hong Kong
T. +852 2511 2003F. +852 2507 4701E. [email protected]