financial statements for the year ended 31 december … · accounting in extraordinary times ... to...
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Accounting in extraordinary times
The Chartered Institute of Management AccountantsFinancial statements For the year ended 31 December 2016
The Chartered Institute of Management Accountants, Financial statements 2016 1
Contents
2 Financialperformance review
5 Corporategovernancestatement
8 The Audit and Risk Process Committee
10 Independent auditors’ report
12 Consolidated statement ofcomprehensiveincome
13 Consolidated balance sheet
14 Consolidated statement of changes in funds
15 Consolidatedcashflowstatement
16 Notes to the consolidated financial statements
39 CIMA’sCouncilandExecutive Committee members
2 The Chartered Institute of Management Accountants, Financial statements 2016
SUMMARY – CIMAgeneratedanoperatingdeficitof£4.4min2016,
excludingcharitabletrusts–£1.9mdeficitin2015.
– CIMAplannedadeficitof£3.4mintheyear,baseduponinvestmentinprojects.Thefallinthestrength ofsterlingduringtheyearrelativetobudgetincreasedtheconsolidatedcostsofnon-UKoperationsby£0.6m;whilstincomegrewby5%,asmalloperatingdeficitwasgeneratedfromnormaloperationsduringayearofconsiderablechange.
INCOME – OneofCIMA’sstrategickeyperformanceindicators
istotalincome–£56.7m,5%higherthanin2015.However,the2016totalfell£1.9mshortofourtarget,primarilyduetoslowergrowthofexamincomethanexpected, and because our commercial income did notmeetourambitioustargets.
– Member and student subscriptions increased to £35.0m,up1%.Thisreflecteda3%increaseinthememberpopulationandwasdespiteadipinstudentpopulationfora secondyear.
– Examinationsandexemptionsincomeincreasedby8%,to£13.4m.In2015,incomedeclinedfollowing theintroductionofthenewexamplatformfortheprofessionalsyllabus.Asconfidenceinthenewassessment platform continues, there is greater studentactivityandincomegrowth.
– In2017,weareplanningforincometoincreaseby3%,to£58.3m.
EXPENDITURE – Direct expenditure is allocated against CIMA’s
valuechain,linkedtooutputsgenerated.Indirectexpenditureisallocatedtothevaluechainequallyacrosseachcomponent.
– Allexpenditureincreasedby9%,to£61.0m,including£3.4mforinvestmentprojects:
– Members of CIMA and the American Institute of CertifiedPublicAccountants(AICPA)votedinfavourofcreatingtheAssociationofInternationalCertifiedProfessionalAccountants(the‘Association’).Expendituresupportingthat activitywas£3.1m.
– Theremainderofinvestmentprojectspendconcerned the Global Management Accounting Principles(GMAP),primarilythroughdevelopmentoftheCGMACompass,adiagnostictoolwhichassessesthefinancialhealthofanorganisation inrelationtotheGMAP.
ACQUIRECIMAgained33,604newstudents,thesecondhigheststudentrecruitmentyearforCIMAonrecord,12%higherthan2015.
Fourmarketsincreasedthenumberofnewstudentsrecruitedcomparedtothenumberrecruitedin2015:
– SriLanka–979morenewstudentsrecruited (acquisitionup33%)
– China–304morenewstudentsrecruited (acquisitionup16%)
– India–2,504morenewstudentsrecruited (acquisitionup245%)
– Indonesia–667morenewstudentsrecruited (acquisitionup224%)
Twomarketssufferedfallsinnewstudentsrecruitedcomparedwiththenumbersrecruitedin2015:
– Pakistan–407fewernewstudentsrecruited(acquisitionfell37%)
– SouthAfrica–429fewernewstudentsrecruited(acquisitionfell13%)
Financial performance review
The Chartered Institute of Management Accountants, Financial statements 2016 3
TheChiefFinancialOfficeraccelerated-entryprogrammeinChinageneratedsignificantrevenues.AnewSeniorExecutivefast-trackprogrammewasaddedtoChina’sportfolio.Othermarketsarealsostartingtoventureintoaccelerated-entryprogrammesforseniorfinanceofficers.
Investmentinacquireactivitiesincreasedby2%,up£11.9m,19%oftotalexpenditure.Themajorityofacquireinvestmentisdeliveredby marketsthatengagewithstakeholders,primarilythroughbusinessdevelopment,attendanceatcareersevents,directmarketing,accountmanagementwithemployers,andothernetworking.
In2017,CIMA,aspartoftheAssociation,willmaximisethevalueofourqualification.Wewill increasestudentnumbersto36,000,continuingtofocusonhigh-growthpotentialareas.TheAssociationwilllaunchdirectaccesstoCGMAintheUS,forwhichareconsiderableinvestmentandresourceisbeingmade.
DEEPENEnablingstudentstoachieveexaminationsuccessisbehindgrowingthemembership.CIMAadmitted4,958newmembers,aboveour targetby14%,comparedto the2015achievementoverbudgetof3%.Wetarget atleast4,750newmembersin2017,asourupturn inexaminationsuccesscontinuestogatherpace.
Deepeninvestmentincreasedby9%,to£14.4m. Themostsignificantproportionofexpenditure wastosupportstudent-learningandprogression. Ourassessmentplatform,managedbyPearsonVUE,deliveredalmost108,000exams.
Taking students through exams is a core part of CIMA andtheAssociation’sbusinessmodel.Wecontinuetoinvestindataanalyticalcapabilitytocontinuallyimproveourunderstandingofstudentbehaviourinarapidlychanginglearningandtechnologyenvironment, enablingustoprovidemorepersonalisedstudying.
Wetargeted115,000assessmentsin2017,refreshingoursyllabusandcompetencyframework,toensure wearethemostrelevantaccountingqualification.
Exampass-ratesremainstrong,exceedingtargets.CIMAemploysconsiderableresourcestosupportstudentsthroughexams.Welaunched“CIMAAptitude2”,newpracticequestions,inresponsetostudentfeedback.ImprovementswerealsomadetoCIMAconnect– morepersonalisationandinteractiveresources.
TherevisedCertificateinBusinessAccountingwaslaunchedin2016–withthefirstexamsinJanuary2017.Thesyllabushasbeenupdated,followingextensiveglobalresearchwithindustryleadersandeducators. Itcanbeastandalonequalification,aswellasan entryrouteintotheCIMAprofessionalqualification.
RETAINCIMAhas106,095members,3%upon2015;99%ofmemberswereretained.
Investmenttokeepmembersincreasedto£12.4m,10%upon2015,andwecontinuetohelpthemthriveintheircareers.Onethirdofourinvestmentinretentionprovidesthosememberbenefitsreceivedaspartoftheannualsubscription.Financial Management magazine continued togofromstrengthtostrength,withspecialeditionshighlightingparticularissuesinbusiness.CIMA’swebsitewasre-launchedtoimprovememberexperience.
The2017focuswillbeondevelopingglobalproductsbenefittingfromthecombinedresourcesofournewAssociation.
FULFILWemeasurefulfilsuccessthroughmemberandstudentsurveys.Membersatisfactionincreasedto79%,upfivepointsfrom2015.MembersrecognisethevalueCIMAbringsto theircareersandfutureprospects;theproductsweoffertosupportthem;andtwo-waycommunication.The member net promoter score dropped a point fromlastyear to38%,largelyonvalueformoney andrecognitioninternationally.
Studentsatisfactionandnetpromoterscoreshaveincreasedby7%and3%from2015.Studentsvaluetheprofessional status and global recognition CIMA brings them;syllabuscontentrelevantfortheircareers;goodcustomersupport;andqueryresolutionandrelevantcareerupdates.
4 The Chartered Institute of Management Accountants, Financial statements 2016
Investmentinfulfilincreasedby14%to£7.7m.ExpenditurefocusedonCIMA’sadvocacyagenda;promotingtheGMAP,leadingto412 newGMAP“pioneers”;engagingwithstakeholders;andfocusingonimprovinghowweoperate.
DevelopmentoftheCGMACompass,adiagnostictoolbasedontheGMAP,wascompleted,andisreadyformarket.
OracleFinancialsCloudreplacedourexistingfinancialandplanningsystemsinJuly2016.UsingOracleallowsCIMAtocreateanefficientfinancefunctionandfacilitateinsight on the performance of the management accountingunitpartoftheAssociation.
Engagingwithmembersandemployeesonthe jointventurewasakeyactivity.Withthe overwhelmingvote in support of the Association, attention turned to creating it,and iscontinuing.
REPUTATION AND RESEARCHCIMA’s reputation and research activityhelpedcreatedemand for management accountants, and enhanced theprofileofourstudentsandmembersglobally.
Investmentinreputationandresearch increasedby13%,to£14.6m,intwomainareas:
– Profile-raising–includingstakeholderevents,promotions,relationship-buildingandPR.Welaunchedthe CGMA 100 Think Tank in China, associating CIMA withtopregionalfinancecompanies.
– Wecontinuedtodevelopandpromoteaworld-classacademicandappliedresearchprogramme,providingreportsandtoolstobenefitmembersandstakeholders.In2016,weproduced15thought-leadershipreportsandtools,resultinginmorethan700,000downloads.
BALANCE SHEET AND RESERVESTheUKexperiencedcontinuedvolatilityinbothinvestmentvaluationsandcurrencydevaluationduring2016.Thedeclineinbondyieldswasparticularlyrelevanttothevaluationofpensionschemeliabilities,andthedecline in sterling to the translational consolidation valuationofinternationaltradingactivities.
AlthoughCIMAplannedadeficitfrominvestmentinstrategicprojects,thiswouldnothavecausedadeficitinfunds.Whencombinedwiththeabove,theaccumulatedfundsandreservesmovedtoadeficitof£5m.
CIMA’sbusinessmodelisstrong,withagrowing and long-term membership population generating a long-termincomestream.ThecombinedresourcesoftheAssociationwill provideastrongerplatformforthemanagementaccountingstrategy.Itisprojectedthatthedeficitinfundswillcontinueinto2018,beforemovingbackintopositiveterritoryasourcontributionsreducethepensiondeficitandfuturegrowthbuildsreservesback.Cashbalancesremainedconsistentwith2015,providingtheongoingstrengthforthebalancesheet.
PENSION SCHEMECIMAoperatesadefinedbenefitpensionscheme, whichhasbeenclosedtofutureaccrualsince2012. Duetothegeneraleconomicconditions,thedeficitincreasedby£7.4m,asaresultofthediscountrateassumptiondecreasingfrom3.75%in2015to 2.65% on31December2016.Thisincreasedthepresent valueoffuturepensionliabilitiesby 25%.
Thecurrentdeficit-recoveryplanisinplaceto2023,althoughthiswassetagainstadeficitof£11.4m in2015.Thenextscheduledvaluationandformalreassessmentofthedeficit-recoveryplanisApril2018.Boththeemployerandschemetrusteesworktomanageliabilityexposureandtooptimisetheriskandreturnbalanceforassetmanagement.
John Windle FCMA, CGMAChiefFinancialOfficer
13April2017
Financial performance review continued
The Chartered Institute of Management Accountants, Financial statements 2016 5
THE UK CORPORATE GOVERNANCE CODECIMA is committed to reaching and maintaining the higheststandardsofcorporategovernanceandinsodoingsupportstheUKCorporateGovernanceCode,whichispublishedbytheFinancialReportingCouncil.TheCodeisprincipallyforlistedcompanies,and,assuch, CIMA is not obliged or in some respects able to followitcompletely.However,theCounciliscommittedtoadoptingbestpracticegovernanceprocessesandthereforechoosestoapplytheCodetoCIMA’soperationsas far as it is applicable and appropriate for a professional bodyincorporatedbyRoyalCharter.ThisreportaimstoevidencehowtheCouncilhasadoptedandsupportedtheCode’sprinciplesintheinterestsofbestpractice.
THE COUNCILThegovernance,overalloversightandcontroloftheInstitutearetheresponsibilityoftheCouncil,whichiscomposedofupto54members(theactualnumber asattheendofthe2016yearwas52–seetheendofthese statements for a full list of members during the year).TheCouncilisresponsibleforsettingstrategyandpolicyinlinewiththeobjectsofCIMA’sRoyalCharter,and for representing the interests of, and reporting to, the generalmembership.ItdeterminesandreviewsCIMA’sstrategicobjectives,goalsandmission,approvesanychangestotheregulations,andistheultimateauthoritywithintheorganisation.AllmembersoftheCouncilareequallyresponsibleforensuringthatthebestinterests of the general membership are considered in the decision-makingprocess.
TheCouncilisledbyateamofHonoraryOfficerscomprisingthePresident,theDeputyPresident,the VicePresidentandtheImmediatePastPresident.Thoseincumbentin theserolesduringthe2016calendaryeararedetailedattheendofthesestatements.
InadditiontotheHonoraryOfficers,thebreakdownofmembershipoftheCouncilconsistsofelectedfellows(upto38),co-optedfellows(notexceedingone-thirdofthenumberofelectedmembers)anduptofourotherpersonsastheCouncilmaythinkfit.UponappointmentallnewmembersoftheCouncilareprovidedwithanelectronicinformationpackandinvitedtoattendaninductiondaydesignedtoprovidecloserunderstandingofCIMA’soperationsandstrategy,andthewayinwhichtheCouncilmeetingsareconducted.Inaddition,allmembersoftheCouncilaregiventheopportunitytoattendagovernanceworkshopandperiodicsessionsonchairingeffectivemeetings.MembersoftheCouncilmaynotberemuneratedfortheirworkforCIMA,exceptaspermittedbytheRoyalCharter,ByelawsandRegulations.Aregisterof Councilmembers’interestsismaintained,
whichdetailsanypersonalorbusinessinterestswhichcouldgiverisetoaconflictofinterestbetweenCIMAandotherbodies.
ThecurrentPresident,AndrewMiskinFCMA,CGMA, waselectedbythemembershipatthe2016AGM,ontherecommendationoftheCouncil.HewillbethehonoraryleaderofCIMAforoneyear,duringwhichtimeheactsasChairmanoftheCouncilandExecutiveCommittee,andrepresentstheinterestsofCIMAexternally,includingtotheGovernment,thepublic,theaccountingprofession,regulatorybodies,andthemedia.ThePresident,togetherwiththeteamofotherHonoraryOfficers,providesstrategic direction to the Council in its deliberations and is responsible for ensuring the democratic process oftheCouncilandthemanagementof themeetings. TheCouncilmetsixtimesin 2016includingitsannualstrategysessioninJuly.
ThechiefexecutiveisthemostseniorstaffmemberofCIMAandisresponsibleforproposing,advisingonandimplementingthestrategyasagreedbytheCouncilandisultimatelyresponsiblefortheprofileofCIMA.Thechiefexecutiveandtheexecutivevicepresident–professionalstandards and conduct are the prime source of operational andgovernanceinformationandadvicefortheCouncilandcommitteemembersand,withtheassistanceof the Corporate Affairs department, are responsible forensuringthatadequateandtimelyinformationisavailabletoallowthemtoprepareforeachmeeting.
TheCouncildelegatesactivitiesinlinewithanannuallyupdated scheme of delegations to the appropriate committees,thechiefexecutive,andtheSeniorLeadershipTeam(SLT).TheCouncilhasresponsibilityforestablishing,regulatinganddissolvingboardsandcommittees,settingthetermsofreferenceofthepolicyandgovernancecommittees,andforreviewingtheirperformance.TheCouncilalsoretainstheauthoritytoestablish,regulateand/ordissolvetheRegionalBoards,AreasandBranchesoftheInstitute.Followingtheformation of the Association, the Council has authorised performanceofsomeoftheseactivitiestobeundertakenbytheAssociationBoard.TheCouncilwill,however,retainresponsibilityforensuringthatCIMA’sRoyalCharterobjectsandresponsibilitiescontinuetobeupheld.
In order to ensure the Council is meeting its obligations in respect of ensuring the best interests of members are considered, all members of CIMA are entitled to attend theAGM,tovoteinpersonorbyproxyonmattersrequiredtobereferredtothemembership,andareinvitedtocompleteregularsatisfactionsurveystoensuretheiropinionsareheard.
Corporate governance statement
6 The Chartered Institute of Management Accountants, Financial statements 2016
REPORTING RESPONSIBILITIES OF THE COUNCILThe Council is responsible for the control and managementofthefundsandfinancialactivitiesoftheInstitute.TheByelawsofCIMArequiretheCounciltoensurethatfinancialstatementsarepreparedforeachfinancialyearwhichgiveatrueandfairviewofthestateofaffairsandofitssurplusordeficitforthatperiod. Inpreparingthosefinancialstatements,theCouncil, inaccordancewithbestpractice,isrequiredto:
– selectsuitableaccountingpoliciesandthenapplythemconsistently;
– makejudgementsandestimatesthatarereasonableandprudent;
– statewhetherapplicableaccountingstandardshavebeenfollowed,subjecttoanymaterialdeparturesdisclosedandexplainedinthefinancialstatements;
– ensurethatthefinancialstatementsarepreparedonthe going concern basis unless it is inappropriate to presumethatCIMAwillcontinueinbusiness;and
– providetheexternalauditorwithallinformationrequiredinorderforthemtocompletetheaudit.
ProperbooksofaccountaremaintainedbythedirectionoftheCouncil,asrequiredbytheByelawsofCIMA.Thesedisclosewithreasonableaccuracyatanytime thefinancialpositionofCIMA.Thefinancialstatementsare prepared on a going concern basis as the Council issatisfiedthatthereisareasonableexpectationthat thereareadequateresourcestocontinueinoperationalexistencefortheforeseeablefuture.
TheCouncilisnotawareofanyrelevantinformation thathasnotbeendisclosedtotheexternalauditor.TheCouncil is responsible for ensuring the maintenance and integrityofthefinancialinformationincludedonCIMA’swebsite.LegislationintheUnitedKingdomgoverningthepreparationanddisseminationoffinancialstatementsmaydifferfromlegislationinotherjurisdictions.
EXECUTIVE COMMITTEETheExecutiveCommittee,onbehalfoftheCouncil,co-ordinatestheactivitiesofthecommitteesreporting totheCouncilandmonitorsthedevelopmentandimplementationofstrategy,includingthethoroughreviewofriskandmitigationonsystemsandcontrols. Italsohasoversightofbrand,communications,marketingandexternalrelationstodeliverCIMA’sstrategicobjectives(seeourIntegratedReport2016formoredetails).TheCommitteeconsistsofthePresident,
whochairsthemeetings,allHonoraryOfficers,thechairpersons of the Council delegated committees, thechiefexecutiveandotherelectedmembersoftheCouncil.
Duringtheyear,theCommitteemetsixtimesandhasadhered to its terms of reference in the consideration anddevelopmentofthefollowingmattersonbehalf oftheCouncil:
– OversightandchallengeofthekeyactivitiesundertakenbyallcommitteesestablishedanddelegatedbytheCouncilandmaintainingfocus on strategic areas to ensure the long term success ofCIMA;
– TheformationoftheAssociationanddevelopment ofitsgovernancearrangements,thevaluedrivers fortheAssociation,andprogresstowardsdeliveringthosedrivers;
– The funding of the Global Management Accounting Principles(GMAP)project;
– Thedevelopmentofthe2016IntegratedReport ofCIMA;
– CIMA’spensionschemedeficitrecoveryplan,and thedevelopmentofassurancearrangementsfor theschemetrustees;
– ThereviewofCIMA’sglobalriskregisterinrelationtomonitoring, managing and reducing the impact of risk occurrences,assessingthescopeoflikelyriskeventsandensuringfuture“horizon”risksarecaptured;
– ReviewofCIMA’smediaspokespeoplepolicy;and – Reviewingtheparametersusedforsettingmember
andstudentfeesfor2017tomeetCIMA’sstrategy,focusedonsustainedmembershipgrowth,global andproduct expansion.
TheExecutiveCommittee’srolehasbeensubsumedbytheManagementAccountingBoardoftheAssociationwitheffectfrom1January2017.
APPOINTMENTS COMMITTEETheAppointmentsCommitteeisoneofCIMA’sgovernancecommittees,whichmeetsaminimumoffourtimesayearandasandwhennecessary.TheCommitteemetseventimesduringtheyear(seethebackofthisreportforalistofmembersduringtheyear).
Itisresponsibleforoverseeingtheselectionandrecruitmentofmembers/individualstoserveonCIMA’scommittees.ItappointstheChairmen,ViceChairmenand members of the Conduct Committees in accordance
Corporate governance statement continued
The Chartered Institute of Management Accountants, Financial statements 2016 7
withthelawsoftheInstitute.Itsdecisionsandnominations are made against the background of theRoyalCharter,ByelawsandRegulations,CIMAstrategy,andthelegalandproceduralframework whichgovernsthefunctionsofthisCommittee.Ithasdelegatedauthorityandresponsibilityforco-ordinatingthe arrangements for all the elections, including elections totheCouncil,selectionofthenextVicePresidentialcandidate,policycommitteechairmen,and‘withoutportfolio’membersoftheExecutiveandAppointmentsCommittees.ItalsohasdelegatedauthorityfromtheCouncil to appoint chairmen and members to CIMA’s delegated committees, and members to represent the Instituteonothernon-Institutebodiesororganisations.Asapartofitsdelegatedresponsibility,italsoapprovesnominationsfortheInstitutemedalsandotherawards.
TheAppointmentsCommitteehasresponsibilityforexecutiveappointmentsasrequiredunderitsterms ofreferencetogetherwithconsiderationofsuccession,pensionbenefitsandotherhumanresourceissuesfor theseniormanagementoftheInstitute.As apart ofthisresponsibility,theCommitteeapprovesseniormanagement appointments and remuneration packages, andindoingsoit willconsidertheremunerationofstaffatsimilarlevelsincomparableorganisations,andtherelativeremunerationofotherCIMAstaff,whileavoidingexcessivecosts.Itwillalsoensurethatperformancerelatedpayformsanappropriateportionoftotalremuneration and monitor the performance of its appointeesagainstpredefinedcriteria,withspecificreferencetoperformancerelatedpay.TheAppointmentsCommitteealsooverseesandapprovesremunerationlevels,welfarearrangementsandnon-salarybenefitsrelating to pensions, supplementation of pensions, healthandotherinsurancecoverforallstaff.
TheAppointmentsCommitteeensuresthatanypaymentstoCouncilmembersforservicestoCIMA areinaccordancewiththeByelaws.
AspectsoftheworkoftheAppointmentsCommitteewilltransitiontotheAssociationBoardanditscommittees.
CHARITABLE TRUSTS AND OTHER FUNDSTheBenevolentFundisaregisteredcharity,created toprovideassistancetomembersand ex-members, andtheirfamilies,intimesof hardship.Thefundisadministeredbyacommitteeofthreemembersof theCouncilandfivelong-standingmembersofCIMA(seethebackofthisreportforalistofmembers duringtheyear),onbehalfofCIMA,thesoletrustee.
TheAnthonyHowittLectureTrustisalsoaregisteredcharitycreatedtoadvanceeducationinaccounting andrelatedsubjects.Thistakestheformofalecture,normallyeveryotheryear,byeminentspeakersonmatters of interest to accountants and other leading membersofthebusinessworld.Thetrustreceivesincomefromfundsoriginallygiftedfromthefounder,AnthonyHowitt.ThetrusteesareallcurrentofficeholdersofCIMA.
TheGeneralCharitableTrustisaregisteredcharity andwasformedfortheadvancementofeducationin thesubjectsofaccounting,managementaccounting,electronic data processing, costing, auditing, taxation, appliedeconomics,financeandotherrelatedsubjectsofaneducationalnature.Adeedofvariationwasapprovedon30July2010whichprovidedthatthepowertoappointnewtrusteesisvestedintheexistingtrustees.Thetrustisan independentbodywithanarm’slengthrelationshipwithCIMA.
SOCIAL RESPONSIBILITYCIMA takes its role in bringing ethics to the forefront of businessthinkingseriously.Allstudentsareissuedwiththe CIMA Code of Ethics on commencement of their trainingandareexaminedinethicaldecision-making.The code is based on international standards and definesthecoreprincipleswhichaCharteredManagementAccountantmustuphold:integrity,objectivity,professionalcompetenceandduecare,confidentialityandprofessionalbehaviour.Practicalguidanceonidentifyingandresolvingethicalconflicts isprovidedthroughdedicatedresourcesandhelplines.CIMA is also committed to promoting to members their widerdutyofcaretothepublicinterest,beyondtheiremployerorclient,assetoutintheCodeofEthics.
AsanInvestorinPeople,CIMAalsostronglyrecognisestheimportanceofitsownemployees,andthelinkbetweensatisfiedstaffandsatisfiedstakeholders.Tothisend,ithasimplementedextensivehealthandsafety,employeesatisfaction,learninganddevelopment,andperformanceappraisalprogrammes.VacanciesarefilledfromwithinCIMAwhereverpossible.
Andrew Miskin FCMA, CGMAPresident
13April2017
8 The Chartered Institute of Management Accountants, Financial statements 2016
COMMITTEE MEMBERSGordon Grant chairs the Audit and Risk Process Committee(the‘Committee’).MrGrantisaFellowandaPastPresidentofCIMAandiscurrentlyFinanceDirectorofDEMSolutions.TheCouncilthereforeconsidersthathehasrelevantfinancialexperience.TheremainingCommitteememberswhohaveservedthroughouttheperiodareGeorgeGlass(vicechairman),JasonBoxer,SimonBittlestone(appointedJune2016),IanKleinman,KrisMcMasters,TomO’Connor(untilJune2016),andRichardSharp(appointedJune2016);eachhasextensivebusinessexperience.
WhilstonlymembersoftheCommitteeareentitled toattendmeetings,theVicePresident,chiefexecutive,chieffinancialofficer,managingdirector,andthesecretarytotheCommittee,togetherwithrepresentativesoftheexternalandinternalauditors,arenormallyinvitedtoeachmeeting,togetherwith advisersandotherswithappropriateexperience,asandwhenrequiredattherequestoftheCommitteeChairman.
THE ROLE OF THE COMMITTEETheCommitteeexiststoreview,andchallengewherenecessary,theactionsandunderlyingopinionsandjudgementsofCIMAmanagementandemployees, inrelationtotheauditedannualfinancialstatements andIntegratedReportofCIMA(andinterimstatementsandreportswhereappropriate)togetherwithitsvariousregionalboards,charities,trusts,pensionandbenevolentfunds,andthedraftannualaccountsofCIMAsubsidiaries.All such considerations are made before recommending suchreportsandstatementswhereapplicabletotheCouncilforendorsementandapproval.
TheCommitteemetonfouroccasionsduring2016;duringthesemeetings,itheldthreeclosedsessionswiththeinternalauditorsand onewiththeexternalauditor.
The minutes of the Committee are circulated to all members of the Council and the Chairman attends the CouncilmeetingatwhichtheannualaccountsofCIMAareapprovedtogivehimtheopportunitytocomment onanymatterspertainingtotheannualaccounts,theunderlyingjudgementsandothermattersofmaterialrelevancethathavebeendiscussedattheCommitteeduringtheprecedingyear.
FollowingtheformationoftheAssociation,the roleoftheCommitteewilltransitiontotheAssociation’sAuditCommitteetofacilitateoversightacrossCIMA,the AICPAandouralignedareasofactivity.
DURING THE YEAR THE FOLLOWING ITEMS WERE REVIEWED:
– Financial statements and Integrated Report andaccounts;
– Allinternalandexternalauditreports; – Riskmanagementframework; – CompliancewiththeBriberyAct;and – Whistleblowingarrangements
andcompliance.
Additionally,theCommitteetakesanactiveinterestinauditcommitteebestpracticeanddiscusseskeyindustryprioritiesatitsmeetings.Membersareencouragedtoattendappropriatedevelopmentopportunities,andundertakeinformalself-evaluationattheconclusion ofeachCommitteemeeting.
EXTERNAL AUDITPricewaterhouseCoopersLLP(PwC)wasappointedasCIMA’sexternalauditorinJune2015followingatenderprocessapprovedbytheCommittee.However,followingthecreationoftheAssociationofInternationalCertifiedProfessionalAccountants(the‘Association’),CIMAhasadoptedapolicyofnotengagingexternalauditorsfromanyofthelargestfirms,asithasthepotentialtocreateaconflictofinterest.Assuch,CIMAwillbeengaginganewexternalauditorfor2017.
The Committee ensures that the external auditor remains independent of CIMA in all material aspects andthattheyhaveadequateresourcesavailableto themtoenablethedeliveryoftheirauditobjectiveto themembership.TheCommitteereviewstheoverallperformanceoftheauditorsannuallyandisresponsibleformakingformalrecommendationseachyeartotheCouncilonthepositionoftheexternalauditors.
TheCommitteemaintainsapolicyregardingacceptablenon-auditwork,whichincorporatesauthoritylevelsforapprovingsuchwork.Theauditorsareprecludedfromengaginginnon-auditservicesthatwouldcompromisetheirindependenceandobjectivityorviolateanylaws orregulationsaffectingtheirappointmentasauditors.
£316kwasincurredonnon-auditservicesduringtheyear.Thiswasinrelationtosupportinarangeofareas,inparticular£148kfortaxadvisoryservicescoveringthecreationoftheAssociation,£41kforsupportinregionalgovernance,and£41kforassuranceofdatamigration tothenewERPsystem.
The Audit and Risk Process Committee
The Chartered Institute of Management Accountants, Financial statements 2016 9
INTERNAL AUDITRepresentativesfromCIMA’sinternalauditor,GrantThornton,areinvitedtoattendeachCommitteemeetingwhereassuranceisprovidedthatinternalcontrolactivities,whichhavebeensubjecttoaudit,areoperatingeffectively.
The internal audit programme is based upon the risk register,incombinationwithdiscussionbetweenseniormanagementandtheCommittee.
Thefollowingareashavebeensubjecttoaninternalauditintheperiod:
– Regionalgovernance; – Informationassuranceincludingcloud security; – Associationtransformationreview; – ERPsystemimplementation–followup report; – Availabilityofkeysystems–followup report.
TheCommitteehasreceivedreportsonthework carriedoutbyinternalauditandtheresultsoftheirinvestigationsincludingmanagementresponsesandtimelines.Ifanysuchrecommendations,intheopinionoftheCommittee,areunreasonablyrejectedordelayedbymanagementthenthesewouldbereportedtotheCouncil.Nosuchreportwasnecessaryin2016.
RISK MANAGEMENTTheCouncilhasoverallresponsibilityfordeterminingtheriskmanagementpolicy,andthe SeniorLeadershipTeam(SLT)hasresponsibilityfordesigning,implementingandmaintainingsystemsconsistentwiththispolicy.
TheExecutiveCommitteeactivelyreviewstheriskregistertwiceayear.Furthermore,theSLTregularlymonitors CIMA’s performance against past and budgeted financialandnon-financialcriteria.Budgetsarepreparedannually,fullreforecastsaredoneatleasttwiceayear,and targetedreforecastsmaybedonemorefrequentlyasdeterminedbyperformanceormarketconditions.Managementaccountsarepreparedeverymonth,sothatfinancialriskscanbeidentifiedearlyandtheappropriateactiontaken.
Followingareviewoftheriskframeworkand processesin2014,opportunitiesforimprovementwereidentified.Theseimprovements,includinganewsoftwaresolution,wereimplementedin2016.
The risk approach at CIMA is based on that recommendedbytheInstituteofRiskManagement. The risk management procedures are designed to identifyandmanagethoserisksthatcouldadverselyimpacttheachievementofCIMA’sobjectives.While theydonotprovideabsoluteassuranceagainstmaterialmisstatements or loss, the Council is of the opinion that propersystemsofriskmanagementandinternalcontrolareinplacewithinCIMA.
Gordon Grant FCMA, CGMAChairman of the Audit and Risk Process Committee
13April2017
10 The Chartered Institute of Management Accountants, Financial statements 2016
REPORT ON THE GROUP FINANCIAL STATEMENTSOur opinionIn our opinion, The Chartered Institute of Management Accountants’(CIMA’s)groupfinancialstatements (the“financialstatements”):
– giveatrueandfairviewofthestateofthegroup’saffairs as at 31 December 2016 and of its loss and cashflowsfortheyearthenended;and
– havebeenproperlypreparedinaccordance withInternationalFinancialReportingStandards (“IFRSs”)asadoptedbytheEuropeanUnion.
WHAT WE HAVE AUDITEDThefinancialstatementscomprise:
– the Consolidated balance sheet as at 31 December2016;
– theConsolidatedstatementofcomprehensiveincomefortheyearthenended;
– theConsolidatedcashflowstatementfortheyearthenended;
– the Consolidated statement of changes in funds for theyearthenended;and
– thenotestothefinancialstatements,whichincludeasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation.
ThefinancialreportingframeworkthathasbeenappliedinthepreparationofthefinancialstatementsisIFRSsasadoptedbytheEuropeanUnion.
Inapplyingthefinancialreportingframework,the Councilhasmadeanumberofsubjectivejudgements,forexampleinrespectofsignificantaccountingestimates.Inmakingsuchestimates,ithasmadeassumptionsandconsideredfutureevents.
Independent auditors’ report to the members of The Chartered Institute of Management Accountants
RESPONSIBILITIES FOR THE FINANCIAL STATEMENTS AND THE AUDITOur responsibilities and those of the CouncilAsexplainedmorefullyintheReportingresponsibilitiesoftheCouncilsetoutonpage 6,theCouncilisresponsibleforthepreparationofthefinancialstatementsandfor beingsatisfiedthattheygiveatrueandfairview.
Ourresponsibilityistoauditandexpressan opiniononthefinancialstatementsinaccordancewithapplicablelawandInternationalStandardsonAuditing(UKandIreland)(“ISAs(UK&Ireland)”).ThosestandardsrequireustocomplywiththeAuditingPracticesBoard’sEthicalStandardsforAuditors.
This report, including the opinion, has been prepared forandonlyformanagement’spurposestoassisttheCounciltodischargeitsstewardshipobligationsandfiduciaryresponsibilitiesinrespectofCIMAunderthetermsoftheRoyalCharterandByelawsinaccordancewithourengagementletterdated10February2017andfornootherpurpose.Wedonot,ingivingtheseopinions,acceptorassumeresponsibilityforanyotherpurposeortoanyotherpersontowhomthisreportisshownorintowhosehandsitmaycomesavewhereexpresslyagreedbyourpriorconsentinwriting.
What an audit of financial statements involvesWeconductedourauditinaccordancewithISAs (UK&Ireland).Anauditinvolvesobtainingevidenceabouttheamountsanddisclosuresinthefinancialstatementssufficienttogivereasonableassurance thatthefinancialstatementsarefreefrommaterialmisstatement,whethercausedbyfraudorerror. Thisincludesanassessmentof:
– whethertheaccountingpoliciesareappropriatetothegroup’scircumstancesandhavebeenconsistentlyappliedandadequatelydisclosed,
– thereasonablenessofsignificantaccountingestimatesmadebytheCouncil,and
– theoverallpresentationofthefinancialstatements.
The Chartered Institute of Management Accountants, Financial statements 2016 11
Weprimarilyfocusourworkintheseareasby assessingtheCouncil’sjudgementsagainst availableevidence,formingourown judgements,andevaluatingthedisclosures in thefinancialstatements.
Wetestandexamineinformation,usingsamplingandotherauditingtechniques,tothe extentweconsidernecessarytoprovideareasonablebasisforustodrawconclusions.Weobtainauditevidencethroughtestingtheeffectivenessofcontrols,substantiveprocedures oracombinationofboth.
Inaddition,wereadallthefinancialandnon-financialinformationinthefinancialstatementsandlinkedIntegratedReporttoidentifymaterialinconsistencieswiththeauditedfinancialstatementsandtoidentify anyinformationthatisapparentlymateriallyincorrectbasedon,ormateriallyinconsistentwith,theknowledgeacquiredbyusinthecourseofperformingtheaudit. Ifwebecomeawareofanyapparentmaterialmisstatementsorinconsistenciesweconsider theimplicationsforourreport.
PricewaterhouseCoopers LLPChartered Accountants London
13April2017
a. ThemaintenanceandintegrityofTheCharteredInstituteofManagementAccountants(CIMA)websiteistheresponsibilityoftheCouncil;theworkcarriedoutbytheauditorsdoesnotinvolveconsiderationofthesemattersand,accordingly,theauditorsacceptnoresponsibilityforanychangesthatmayhaveoccurredtothefinancialstatementssincetheywereinitiallypresentedonthewebsite.
b. LegislationintheUnitedKingdomgoverningthepreparationanddisseminationoffinancialstatementsmaydifferfromlegislationinotherjurisdictions.
12 The Chartered Institute of Management Accountants, Financial statements 2016
Consolidated statement of comprehensive income
Year ended 31 December Note £0002016 £000 £000
2015reclassified*
£000Income 2 56,660 54,161
Acquire (11,851) (11,611)Deepen (14,428) (13,334)Retain (12,440) (11,356)Fulfil (7,702) (6,756)Reputation and research (14,607) (12,959)Expenditure (61,028) (56,016)
Operating deficit before charities (4,368) (1,855)
Income/(expense)fromcharitabletrustsand other funds 65 (28)Total operating deficit (4,303) (1,883)
Taxation 4a 61 7
Deficit for the year (4,242) (1,876)
Other comprehensive incomeItems which will not be reclassified to net income
Actuarial(loss)/gainonpensionscheme 13b (8,080) 2,414 Items which may be reclassified to net income
Increase/(decrease)inforeign currencytranslationreserve 193 (275)Realisedgainoninvestmentdisposal (311) (254)Unrealisedgainoninvestmentrevaluation 762 287
Total other comprehensive (expense)/income (7,436) 2,172
Total comprehensive (expense)/income (11,678) 296
*SeeNote2
Resultsfortheyearareallderivedfromcontinuingoperations.
Thenotesonpages16to38formanintegralpartofthesefinancialstatements.
The Chartered Institute of Management Accountants, Financial statements 2016 13
As at 31 December Note2016£000
2015£000
Non current assetsProperty,plantandequipment 5 5,726 6,873Intangible assets 6 7,103 5,033 Interestinotherinvestments 7 5,621 5,619 Interestinjointventure 8 – –
18,450 17,525 Current assets
Tradeandotherreceivables 9a 4,664 4,696 Cashandcashequivalents 9b 14,096 12,815 Interestinotherinvestments 9c – 2,093
18,760 19,604
Total assets 37,210 37,129
Funds Accumulated funds (7,429) 4,958 Fairvaluereserves 2,524 2,348 Foreigncurrencytranslationreserve (2,635) (2,828)Charitable trusts and other funds 2,766 2,426
(4,774) 6,904 Current liabilities
Tradeandotherpayables 10 9,119 4,932 Provisions 11 416 349 Subscriptionsandfeesreceivedinadvance 12 13,029 12,969
22,564 18,250 Non current liabilities
Provisions 11 446 439 Pensionschemeliability 13a 18,885 11,439 Other retirement obligations 13i 89 97
19,420 11,975
Total funds and liabilities 37,210 37,129
Thenotesonpages16to38formanintegralpartofthesefinancialstatements.
Thefinancialstatementsonpages12to38wereapprovedbytheCouncilon13April2017,andsignedon itsbehalfby:
Andrew Miskin FCMA, CGMA David Stanford FCMA, CGMA John Windle FCMA, CGMAPresident DeputyPresident ChiefFinancialOfficer
Consolidated balance sheet
14 The Chartered Institute of Management Accountants, Financial statements 2016
Year ended 31 December Note
Accumulated funds£000
Fairvalue reserves
£000
Foreign currency
translation reserve
£000
Total before
charities£000
Charitable trusts
and other funds£000
Group total
£000Balance at 31 December 2014 4,392 2,224 (2,553) 4,063 2,545 6,608
Changes in funds for 2015Deficit for the year (1,848) – – (1,848) (28) (1,876)Other comprehensive income
Realisedlossoninvestmentdisposal – (254) – (254) – (254)Unrealisedgain/(loss)oninvestmentrevaluation 7,9c – 378 – 378 (91) 287Actuarial gain on pension scheme 13b 2,414 – – 2,414 – 2,414 Foreign exchange loss on translation – – (275) (275) – (275)
Total comprehensive income 566 124 (275) 415 (119) 296
Balance at 31 December 2015 4,958 2,348 (2,828) 4,478 2,426 6,904
Changes in funds for 2016Deficit for the year (4,307) – – (4,307) 65 (4,242)Other comprehensive income
Realisedlossoninvestmentdisposal – (311) – (311) – (311)Unrealisedgainoninvestmentrevaluation 7,9c – 487 – 487 275 762Actuarial loss on pension scheme 13b (8,080) – – (8,080) – (8,080)Foreign exchange gain on translation – – 193 193 – 193
Total comprehensive (expense)/income
(12,387) 176 193 (12,018) 340 (11,678)
Balance at 31 December 2016 (7,429) 2,524 (2,635) (7,540) 2,766 (4,774)
Thenotesonpages16to38formanintegralpartofthesefinancialstatements.
Consolidated statement of changes in funds
The Chartered Institute of Management Accountants, Financial statements 2016 15
Year ended 31 December Note2016£000
2015£000
Cash flows from operating activitiesMember and student income 48,451 48,437Other income 6,368 4,725Paymentstosuppliers (29,840) (36,552)Paymentstoemployees (17,344) (15,568)Paymentsrelatingtotaxes (1,383) (1,936)Paymentsrelatingtopostretirementbenefits (4,186) (2,330)Paymentsrelatingtocharitableactivities (233) (156)
Cash generated from operating activities 1,833 (3,380)
Taxation – –
Net cash arising from operating activities 1,833 (3,380)
Cash flows from investing activitiesPurchaseofproperty,plantandequipment 5 (191) (5,221)Purchase of intangible assets 6 (3,636) (2,483)Purchaseofinvestments 7,8,9c (94) (20)Proceedsfromdisposalsofinvestments 2,895 1,709Investmentincome 320 241
Net cash used in investing activities (706) (5,774)
Net increase/(decrease) in cash and cash equivalents 1,127 (9,154)
Cashandcashequivalentsat1January 12,815 22,197
Effect of foreign exchange ratesChangeinforeigncurrencytranslationreserve 193 (275)Netexchangedifferencesonproperty,plantandequipment (39) 47
Cash and cash equivalents at 31 December 9b 14,096 12,815
Thenotesonpages16to38formanintegralpartofthesefinancialstatements.
Consolidated cash flow statement
16 The Chartered Institute of Management Accountants, Financial statements 2016
1 SUMMARY OF ACCOUNTING POLICIESa Basis of preparation
CIMAisabodyincorporatedbyRoyalCharteranddomiciledintheUK.Thefinancialstatementsarepreparedon thegoingconcernbasis,underthehistoricalcostconvention,asmodifiedbytherevaluationoffreeholdpropertiesandinvestments,andinaccordancewithInternationalFinancialReportingStandards(IFRS)asadoptedbytheEuropeanUnionandwiththeIFRSInterpretationalsCommitteeinterpretations.Leaseholdpropertiesarerevaluedbyaqualifiedsurveyor,onadepreciatedreplacementcostbasis,everythreeyears,ormoreregularlyshouldmanagementconsiderthatthevaluehaschangedsignificantly.Investmentsarerevaluedatthebalancesheetdateinlinewiththefairvaluehierarchy.
Reclassification of 2015 amountsAsexplainedinNote2,prioryearexpenditurehasbeenreclassifiedtobetteralignspendwiththeelementofthebusinessmodelthatitsupports.Thereisnoimpactonthesurplusfor2015fromthisreclassification.
b Basis of consolidationTheconsolidatedgroupfinancialstatementscomprisethefinancialstatementsofCIMAandthewhollyownedsubsidiaryundertakings,charitabletrustsandotherfundsunderthecontrolofCIMA,togetherwithashareoftheresults,assetsandliabilitiesofjointlycontrolledentities(jointventures)usingtheequitymethodofaccounting,wheretheinvestmentiscarriedatcostpluspostacquisitionchangesintheshareofnetassetsofthejointventure,lessanyprovisionforimpairment.ControlisachievedwhereCIMAisexposed,orhasrights,tovariablereturnsfromitsinvolvementwiththeinvesteeandhastheabilitytoaffectthesereturnsthroughitspowerovertheinvestee.Ajointventureisanentityestablishedtoengageineconomicactivity,whichCIMAjointlycontrolswithitsfellowventurers.Lossesinexcessoftheconsolidatedinterestinjointventuresarenotrecognised,exceptwhereCIMAoritssubsidiarieshavemadeacommitmenttomakegoodthoselosses,andareincludedincreditorswheretheinvestmentisimpaired.Theconsolidatedgroupfinancialstatementscomprisethestatementsofcomprehensiveincome,balancesheetsandcashflowstatementsofCIMAanditsforeignoperationsasdetailedinNote16.
c Adoption of new and revised standardsThe following statements are effective and relevant in the current year:AmendmenttoIAS16Property,plantandequipment,andIAS38Intangibleassets,ondepreciationandamortisation(effective1January2016)Annualimprovements2014(effective1January2016)AmendmenttoIAS1Presentationoffinancialstatementsdisclosureinitiative(effective1January2016)The following statements are effective and not relevant in the current year:AmendmenttoIAS27Separatefinancialstatementsonequityaccounting(effective1January2016)AmendmenttoIFRS10Consolidatedfinancialstatements,andIAS28Investmentsinassociatesandjointventuresonapplyingtheconsolidationexemption(effective1January2016)IFRS14Regulatorydeferralaccounts(effective1January2016)AmendmenttoIAS16Property,plantandequipment,andIAS41Agricultureonbearerplans (effective1January2016)AmendmenttoIFRS11Jointarrangementsonacquisitionofaninterestinajointoperation (effective1January2016)
Notes to the consolidated financial statements
The Chartered Institute of Management Accountants, Financial statements 2016 17
1 SUMMARY OF ACCOUNTING POLICIES continuedc Adoption of new and revised standards continued
The following statements may be relevant for future periods:AmendmenttoIAS7Presentationoffinancialstatementsdisclosureinitiative(effective1January2017)Amendment to IAS 12 Income taxes on recognition of deferred tax assets for unrealised losses (effective1January2017)IFRIC22Foreigncurrencytransactionsandadvanceconsideration(effective1January2018)IAS40Investmentpropertytransfersofinvestmentproperty(effective1January2018)AmendmenttoIFRS4‘Insurancecontracts’regardingtheimplementationofIFRS9,‘Financialinstruments’(effective1January2018)IFRS9Financialinstruments(effective1January2018)IFRS15Revenuefromcontractswithcustomers(effective1January2018)IFRS16Leases(effective1January2019)
d Income recognitionThemainincomestreamsarerecognisedasfollows:Memberandstudentsubscriptionsarerecognisedintheyearwhentheyfalldue,wherethereisnosignificantuncertaintyastocollectability.SubscriptionsandfeesreceivedinadvancerepresentfundspaidtoCIMAinthecurrentyear,butthatrelatetotheannualfeeswhichfalldue,andarerecognisedasincome,inthefollowingyear.Examfeesarerecognisedonthedateoftheexam.Exemptionfeesarerecognisedwheninvoiced.Goodsandservices:
CoursesandconferencesrevenuerepresentsincomeearnedfromthecombinationofcoursesandconferencesactivityandBPPProfessionalEducationLtdFinanceandTaxoperations.Magazinesalesandadvertisingarerecognisedinthemonthofpublication.Sponsorshipincomeisrecognisedwhentheeventoccurs.Charitabledonationsandincomearerecognisedwhentheyarereceived.
Financial:Interestisaccruedonadailybasis.DividendsfrominvestmentsarerecognisedwhenCIMA’srighttoreceivepaymentisestablished.
18 The Chartered Institute of Management Accountants, Financial statements 2016
Notes to the consolidated financial statements continued
1 SUMMARY OF ACCOUNTING POLICIES continuede Expenditure recognition
Expenditurerelatedtoaspecificincomestreamisrecognisedinthesameperiodastheincome.Expenditurerelatedtoaspecificperiodoftimeorserviceisrecognisedinthatperiod.Goodsorservicesdelivered,forwhichtheinvoicehasnotbeenreceived,areaccruedforintheaccountingperiodinwhichtheyaredelivered.ExpenditureincurreddeliveringthecoreproductsorservicesofCIMAoritsongoingfunctionalactivityforwhichthereisnodirectrevenuebenefitisexpensedintheaccountingperiodinwhichthecommitmentwasmade.GiftaiddonationsmadebyCIMAtotheGeneralCharitableTrustarerecognisedwhenpaid.
f LeasesLeasesareclassifiedasfinanceleaseswheneverthetermsoftheleasetransfersubstantiallyalltherisksandrewardsofownershiptoCIMA.Allotherleasesareclassifiedasoperatingleasesandrentalpaymentsarechargedagainstincomeonastraightlinebasisoverthetermofthelease.
g TaxationCorporationtaxarisesonCIMA’stradingprofits,chargeablegainsandinvestmentincomelessanycharitabledonationsbywayofgiftaid.Aprovisionismadefordeferredtaxationtotheextentthatmaterialtimingdifferencesareexpectedtoreverseinfutureperiods.Noprovisionfordeferredtaxationisincludedinrespectof surplusesonrevaluationofpropertyandinvestments.
h InvestmentsInvestmentsarerecognisedatcostonthetradedate,andarerestatedonthereportingdateatfairvalue.Unrealisedgainsandlossesarerecogniseddirectlyinfairvaluereservesuntiltheinvestmentisdisposedoforisdeterminedtobeimpaired,atwhichtimethecumulativegainorloss,previouslyrecognisedinfairvaluereserves,isincludedinthenetsurplusordeficitfortheperiod.Incomeorexpensearisingonthetranslationofinvestmentsdenominatedinforeigncurrenciesisrecognisedaspartofthedeficitorsurplusfortheyear.
i Property, plant and equipmentFreeholdlandandbuildingsarecarriedatfairvalue,basedonvaluationsconductedeverythreeyears,withsubsequentadditionsatcost.Theyaredepreciatedat2%onastraightlinebasis.Leaseholdlandandbuildingsarecarriedatfairvalue,basedonvaluationsconductedeverythreeyears,withsubsequentadditionsatcost.Theyaredepreciatedonastraightlinebasisovertheperiodofoccupation.Leaseholdimprovementsarecarriedatcostanddepreciatedonastraightlinebasisovertheperiodofoccupation.Otherequipment,comprisingIThardware,iscarriedatcostanddepreciatedonastraightlinebasisatratesvaryingfrom20%to50%,dependingontheusefuleconomiclifeoftheequipment.Smallitemsoffurnitureand officeequipmentareexpensedintheyearofpurchase.CostincludesattributableirrecoverableVAT.
j Intangible assetsIntangibleassetscomprisecomputersoftwareandtrademarks;thesearestatedatcost.CostincludesattributableirrecoverableVAT.Amortisationischargedonastraightlinebasisovertheestimatedusefuleconomiclifeofthesoftware(betweentwoandfiveyears)andoverthedurationofthetrademark.ItisapportionedacrosstheelementsofvaluechainexpenditureasexplainedinNote2.
The Chartered Institute of Management Accountants, Financial statements 2016 19
1 SUMMARY OF ACCOUNTING POLICIES continuedk Impairment
Ateachbalancesheetdatethecarryingamountsofnon-currentassetswithfinitelivesarereviewedtodeterminewhetherthereisanyindicationthatthoseassetshavesufferedanimpairmentloss.Ifanysuchindicationexists,therecoverableamountoftheassetisestimatedinordertodeterminetheextentoftheimpairmentloss.Iftherecoverableamountoftheassetisestimatedtobelessthanthecarryingamount,thecarryingamount isreducedtotherecoverableamount.Impairmentlossesarerecognisedintheconsolidatedstatementofcomprehensiveincome,unlesstheassetislandorbuildingscarriedatarevaluedamount,inwhichcase theimpairmentlossistreatedasadecreaseinthefairvaluereserve.Whereanimpairmentlosssubsequentlyreverses,thecarryingamountoftheassetisincreasedtotherevisedestimateoftherecoverableamount,butsothattheincreasedcarryingamountdoesnotexceedthecarryingamountthatwouldhavebeendeterminedhadnoimpairmentlossbeenrecognisedfortheassetinprioryears.A reversalofanimpairmentlossisrecognisedintheconsolidatedstatementofcomprehensiveincome,unlesstheassetiscarriedatarevaluedamount,inwhichcasethereversaloftheimpairmentlossistreatedasanincreaseinthefairvaluereserve.
l Trade and other receivablesTradeandotherreceivablesarestatedatoriginalinvoicevaluelessaprovisionfordoubtfuldebt.Therecoverabilityofdebtisreviewedonanongoingbasis.CIMAreviewsindicatorsofimpairmentonanongoingbasisand,wheresuchindicatorsexist,makesanestimateoftheassetsrecoverableamount.
m Trade and other payablesTradeandotherpayablesarerecognisedatamortisedcost.
n Cash and cash equivalentsCashandcashequivalentscomprisecashinhand,balanceswithbanksandfinancialinstitutions,creditcardreceiptsclearedandintransittoCIMA,andinvestmentsinmoneymarketinstrumentsrepresentingshortterm,highlyliquidinvestments,whicharereadilyconvertibletoknownamountsofcash.
o Retirement benefitsFordefinedbenefitplans,thecostofprovidingbenefitsisdeterminedusingtheprojectedcreditmethod, withvaluationsforthepurposesofIAS19beingcarriedoutateachbalancesheetdate.Pastservicecostisrecognisedimmediately,totheextentthatbenefitsarealreadyvested,andotherwiseisamortisedonastraightlinebasisovertheaverageperioduntiltheamendedbenefitsbecomevested.Theamountrecognisedintheconsolidatedbalancesheetrepresentsthepresentvalueofthedefinedbenefitobligation,reducedbythefairvalueofplanassets.Anyassetresultingfromthiscalculationislimitedtotheunrecognisedactuariallossesandpastservicecost,plusthepresentvalueofavailablefundsandreductions infuturecontributionstotheplan.Forthedefinedcontributionscheme,thecostrecognisedfortheperiodisthecontributionpayableinexchangeforservicesrenderedbyemployeesduringtheperiod.
p Foreign currenciesSterlingisthepresentationalcurrencyofCIMA.Transactionsincurrenciesotherthansterlingareinitiallyrecordedattheratesofexchangeprevailingonthedatesofthetransactions.Surplusesanddeficitsarisingonexchangeareincludedinthenetsurplusordeficitfortheperiod.Monetaryassetsandliabilitiesaretranslatedattheratesprevailingonthebalancesheetdate,includingnon-UKoperations.Onconsolidation,theincomeandexpenseitemsofthenon-UKoperationsaretranslatedattheaverageratesfortheperiod.Exchangedifferenceson thetranslationoftheassetsandliabilitiesofthenon-UKoperationshavebeentakentotheforeigncurrencytranslationreserve.
20 The Chartered Institute of Management Accountants, Financial statements 2016
Notes to the consolidated financial statements continued
1 SUMMARY OF ACCOUNTING POLICIES continuedq Derivatives
CIMAusesderivativefinancialinstruments(derivatives)tohedgeitsexposuretoforeignexchangerisksarisingfromoperationalactivities.CIMAdoesnotholdorissuederivativesfortradingpurposes.However,derivativesthatdonotqualifyforhedgeaccountingareaccountedforastradinginstruments.Derivativesarerecognisedatfairvalue.Asthefinancialinstrumentsaredesignatedasfairvaluethroughprofitandloss,thegainorlossonre-measurementtofairvalueisrecognisedimmediatelyintheconsolidatedstatementofcomprehensiveincome.
r Sources of estimation and uncertaintyThepreparationofthefinancialstatementsrequiresCIMAtomakeestimates,judgementsandassumptionsthat affectthereportedamountsofassets,liabilities,revenuesandexpensesandrelateddisclosureofcontingentassetsandliabilities.CIMAbasesitsestimatesonhistoricalexperienceandvariousotherassumptionsthatitbelievesarereasonableunderthecircumstances,theresultsofwhichformthebasisformakingjudgementsaboutthecarryingvalueofassetsandliabilitiesthatarenotreadilyapparentfromothersources.Actualresults maydifferfromthoseestimatesunderdifferentassumptionsorconditions.
s Significant judgementsCIMAbelievesthatthemostsignificantcriticaljudgementareaintheapplicationofitsaccountingpoliciesisits deferredbenefitpensionschemeassumptions,whicharesetoutinNote13.Theothersignificantjudgementisthelevelofprovisionfordoubtfuldebts,assetoutinNote9a.
t FundsCIMAmaintainsalevelofreservestoprotectagainstashortfallinincomeshouldeconomicormarketforcescauseasignificantdeclineindemandforitsproductsandservicesforoneyear,ortoitsabilitytoearnareturnonitsinvestedfunds.Mostinvestmentprojectsarefundedoutofcurrentincome,howeveraccumulatedreservesmaybeusedtofundsignificantstrategicprojects,forexamplethecreationoftheAssociationandGlobalManagementAccountingPrinciples.FairvaluereservesrepresentthemarketvalueofCIMA’sinvestmentsandpropertyinexcessofthehistoriccost.Theforeigncurrencytranslationreserverepresentsexchangedifferencesarisingonthetranslationoftheassetsandliabilitiesofthenon-UKoperations.CharitabletrustreservesrepresentthetotalreservesrelatingtotheBenevolentFundandtheAnthonyHowittLectureTrust.Whiletheaccumulatedfundsarenegativethisyear,drivenbythePensionSchemevaluationassumptions,CIMA’sbusinessmodelremainsstrongandrelevanttothemarket,withagrowingmembershippopulationunderpinnedbyhighretentionlevelsgeneratingsustainablefutureincome.TheorganisationiscommittedtostandingbehindthePensionSchemeandanagreedplanisinplacetosupportandmanagethisoverthecomingyears.Inadditiontothis,thecombinedresourcesoftheAssociationwillprovideastrongerplatformforthedeliveryofthemanagementaccountingstrategytogrowthemembershippipeline.
The Chartered Institute of Management Accountants, Financial statements 2016 21
2 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
2016£000
2015reclassified
£000IncomeMember and student subscriptions 34,957 34,681Examinations and exemptions 13,434 12,484Goodsandservices 6,225 5,119Financial 2,044 1,877Total income 56,660 54,161
ExpenditureAcquire (11,851) (11,611)Deepen (14,428) (13,334)Retain (12,440) (11,356)Fulfil (7,702) (6,756)Reputation and research (14,607) (12,959)Total expenditure (61,028) (56,016)
Income/(expenditure)fromcharitabletrustsandotherfunds 65 (28)Taxation 61 7
Deficit for the year (4,242) (1,876)
DuringtheyearCIMAimplementedanewenterpriseresourceplanning(ERP)system,andtooktheopportunityto updatethechartofaccounts.Asaresult,someexpenditurehasbeenreclassifiedtomoreaccuratelyreflectthebenefitsitdrives,andthecomparativesinthesefinancialstatementshavebeenreclassifiedtoconformto theupdatedchartofaccounts.Thisreclassificationislimitedtoexpenditurewithintheconsolidatedstatement ofcomprehensiveincome.ThemostsignificantchangeswerethemoveoftheGlobalCorporateRelationsteamfromreputationandresearchtoacquire,andthemoveoftheProfessionalStandardsfunctionfromreputationandresearchtoretain.Thechangesreflectthehowourbusinessmodelcontinuestoevolve,andthewaythatoperational objectivesfitintothatmodel.
AcquirereferstothecostofattractingnewstudentstoCIMA.Itincludesthecostsofdirectadvertisingandpromotion,aswellasbuildingrelationshipswithschools,collegesandemployers,whocanadvocateonCIMA’sbehalf.
Deepenisaboutstrengtheningourrelationshipwithstudents,supportingthemthroughtheexaminations,andencouragingthemtoachievemembership.
Retainisthecostofremainingengagedwithourmembers,anddeliveringthebenefitstheywantfromCIMA.In particular,itincludesensuringCPDservicesremainrelevantandavailabletosupportongoinglifelonglearning.
FulfiliswhereweaimtoinstilprideinCIMA,theCGMAdesignation,andmanagementaccountingasawhole,among allourstakeholders,includingthecostoftransformationalstrategicprojects.
CIMA’sreputationforhighqualityresearchinthescienceofmanagementaccountingunderpinseverypartofthevaluechain.Itattractsstudents,persuadesmemberstostayandgrowwithus,andcementsprideintheCIMAbrandthatleadstopositiveadvocacy.Itshowcasestherelevanceofthequalificationtoallourstakeholders.
AsignificantpartofCIMA’scostbaseisoperationalandsupportsallareasofthebusiness,e.g.officerent. Thesecostsareapportionedevenlyacrosstheelementsofthevaluechain.
22 The Chartered Institute of Management Accountants, Financial statements 2016
Notes to the consolidated financial statements continued
3 OPERATING DEFICITa The operating deficit has been arrived at after charging:
2016£000
2015£000
Net foreign exchange gain 294 22Researchanddevelopmentcosts 957 586Depreciationofownedproperty,plantandequipment 1,265 867Amortisation of intangible assets 1,504 1,037Gainondisposalofinvestments 423 298(Loss)/gainondisposalofnoncurrentassets (155) 35Operating lease cost 2,201 2,210
Inaccordancewitharticle3(c)oftheRoyalCharter,noCouncilmemberwasremuneratedduringtheyear,exceptunderByelaw34(b)(examiners’fees).NoCouncilmemberbenefitedpersonallyfromanycontractwithCIMA,andcontractswithorganisationswithwhichCouncilmemberswereconnectedarenotofamaterialnature.ThetotalreimbursementofexpensesincurredbyCouncilmembersonCIMAbusinesswas£1.2m(2015:£1.3m).
b Fees paid to external auditorsPwCreplacedChantreyVellacottDFKinJune2015asthegroupauditor.PwCandChantreyVellacottDKF(includingDFKnetworkfirms)providedallaudit,assurance,taxandadvisoryservicesintheUK,andtosome nonUKoffices.
2016£000
2015£000
External auditPwC
UK 235 153Non UK 34 54
ChantreyVellacottDFKandDFKnetworkfirmsUK – –Non UK – 18
269 225Tax and advisory servicesPwC
UK 316 189Non UK – –
ChantreyVellacottDFKandDFKnetworkfirmsUK – 19Non UK – –
316 208Total fees paid to external auditors 585 433
The Chartered Institute of Management Accountants, Financial statements 2016 23
3 OPERATING DEFICIT continuedc Employees
2016£000
2015£000
Salariesandwages(includingtemporarystaffandtheSLT) 17,344 15,568National insurance 1,383 1,936Definedcontributionscheme 2,877 1,176Definedbenefitscheme 667 731
22,271 19,411
TheyearendnumberofUKbasedemployeeswas269(2015:258),andthenumberofemployeesoutsideof theUKwas189(2015:201).Allemployeesworkinadministrativeroles.
d Senior Leadership Team (SLT)RemunerationpayabletomembersoftheSLTfortheyearis:
Salary £000
Performance related pay
£000
Pension contribution
£000
Total 2016 £000
Total 2015 £000
Chiefexecutive Note i 220 35 18 273 308Chiefexecutive Note ii 88 – 13 101 –Managing director Note ii 97 21 15 133 188Chieffinancialofficer 155 19 26 200 174Executivevicepresident–academics 138 17 26 181 160Executivevicepresident–externalaffairs 127 16 19 162 141Executivevicepresident–professionalstandards and conduct 131 16 29 176 154Executivevicepresident–marketingand sales 128 16 8 152 131Managing director – Europe, Africa and Asia Note iii 58 – 9 67 –
1,142 140 163 1,445 1,256
i Theoutgoingchiefexecutiveresignedfromthispositionon31July2016ii Themanagingdirectorwaspromotedtochiefexecutiveon1August2016iii Managingdirector–Europe,AfricaandAsiaisanewrolefrom1August2016
24 The Chartered Institute of Management Accountants, Financial statements 2016
Notes to the consolidated financial statements continued
4 TAXATIONa Tax credit for the year
2016£000
2015£000
Current taxCurrenttaxpayableondeficitfortheyear – –Total current tax – –
Deferred taxCurrentyear (68) –Effect of changes in tax rates 7 (7)Total deferred tax (61) (7)Total tax credit per consolidated statement of comprehensive income (61) (7)
b Factors affecting the tax credit for the year2016 £000
2015 £000
Deficitonordinaryactivitiesbeforetax (4,303) (1,883)TaxondeficitonordinaryactivitiesatthestandardUKrateof20%(2015:20.25%) (861) (381)Effectsof:
Net income not taxable 382 339Expenses not deductible 20 –Chargeable gains 26 42Utilisation of tax losses 365 –Tax rate changes 7 (7)
Current tax credit for the year (61) (7)
Notaxliabilitiesariseundertheactivitiesofthecharitabletrusts.
c Deferred tax provision2016 £000
2015 £000
Provisionatthestartoftheyear 61 72Impactofratechangeonprioryear – (4)Creditfortheyear (61) (7)Provision at the end of the year – 61
The Chartered Institute of Management Accountants, Financial statements 2016 25
5 PROPERTY, PLANT AND EQUIPMENT
Freehold landand building
(atvaluation)£000
Leasehold land
and building(atvaluation)
£000
Leaseholdimprovements
(atcost)£000
Otherequipment
(atcost)£000
Total£000
Net book valueAt 31 December 2014 969 254 643 744 2,016
Cost or valuationAt1January2015 1,011 304 5,080 1,656 8,051Additions – – 3,304 1,936 5,240Disposals – – (4,226) (551) (4,777)Revaluation 13 – – – 13Transferfromsoftware – – – 62 62Transfertosoftware – – – (94) (94)Foreign exchange – – (26) (26) (52)At 31 December 2015 1,024 304 4,132 2,983 8,443
Accumulated depreciationAt1January2015 (42) (50) (4,437) (912) (5,441)Chargefortheyear (25) (32) (386) (592) (1,035)Eliminated on disposals – – 4,177 560 4,737Revaluation 62 74 – – 136Transferfromsoftware – – – (61) (61)Transfertosoftware – – – 89 89Foreign exchange – – (3) 8 5At 31 December 2015 (5) (8) (649) (908) (1,570)
Net book valueAt 31 December 2015 1,019 296 3,483 2,075 6,873
Cost or valuationAt1January2016 1,024 304 4,132 2,983 8,443Additions – – 66 106 172Disposals – – (183) (315) (498)Transferfromsoftware – – – 14 14Foreign exchange – – 58 12 70At 31 December 2016 1,024 304 4,073 2,800 8,201
Accumulated depreciationAt1January2016 (5) (8) (649) (908) (1,570)Chargefortheyear (20) (31) (369) (845) (1,265)Eliminated on disposals – – 156 240 396Transferfromsoftware – – – (5) (5)Foreign exchange – – (25) (6) (31)At 31 December 2016 (25) (39) (887) (1,524) (2,475)
Net book valueAt 31 December 2016 999 265 3,186 1,276 5,726
Includedaboveareassetsunderconstructionatacostof£2k(2015:£97k).Astheseassetsareunderconstruction,depreciationhasnotstartedyet.
FreeholdandleaseholdlandandbuildingsrefertopropertyinSriLanka.LeaseholdimprovementsincludeCIMA’scorporatecentreofficesintheHeliconbuilding,Londonandalsonon-UKoffices.
26 The Chartered Institute of Management Accountants, Financial statements 2016
Notes to the consolidated financial statements continued
5 PROPERTY, PLANT AND EQUIPMENT continuedThevaluationofthefreeholdandleaseholdlandandbuildinginSriLankawaspreparedbyanindependentvaluationexpertonthebasisofdepreciatedreplacementcostat30October2015.Thevaluationsegregates therespectivevaluesofthefreeholdandleaseholdlandandbuildings.
Onahistoricalcostbasis,therevaluedfreeholdandleaseholdlandandbuildingsinSriLankawouldhavebeenincludedatacostof£670klessaccumulateddepreciationof£290k.
6 INTANGIBLE ASSETSComputer
software £000
Trademarks £000
Total £000
Net book valueAt 31 December 2014 2,590 993 3,583
CostAt1January2015 9,215 1,079 10,294Additions 2,338 145 2,483Disposals (665) – (665)Transferfromequipment 94 – 94Transfertoequipment (62) – (62)At 31 December 2015 10,920 1,224 12,144
Accumulated amortisationAt1January2015 (6,625) (86) (6,711)Chargefortheyear (974) (63) (1,037)Eliminated on disposals 665 – 665Transferfromequipment (89) – (89)Transfertoequipment 61 – 61At 31 December 2015 (6,962) (149) (7,111)
Net book valueAt 31 December 2015 3,958 1,075 5,033
CostAt1January2016 10,920 1,224 12,144Additions 3,472 164 3,636Transfertoequipment (14) – (14)Disposals (900) – (900)At 31 December 2016 13,478 1,388 14,866
Accumulated amortisationAt1January2016 (6,962) (149) (7,111)Chargefortheyear (1,300) (204) (1,504)Transfertoequipment 5 – 5Eliminated on disposals 847 – 847At 31 December 2016 (7,410) (353) (7,763)
Net book valueAt 31 December 2016 6,068 1,035 7,103
Includedaboveareassetsunderconstructionatacostof£2,822k(2015:£1,408k).Astheseareassetsunderconstruction,depreciationhasnotstartedyet.
The Chartered Institute of Management Accountants, Financial statements 2016 27
6 INTANGIBLE ASSETS continuedIndividually material intangible assets
Net book value £000
Remaining useful life
Enterpriseresourceplanningsystem 842 5yearsCustomerrelationshipmanagement(CRM)system 441 1–4yearsGlobal Management Accounting Principles assessment tool 198 3yearsCIMAconnect 93 1years
TheCRMsystemwasinitiallyintroducedin2002andhasbeenaddedtoonanannualbasis.Individualelementsaredepreciatedoverfiveyears.Theremainingusefulliferepresentstherangeofassetsremaining.
7 INTEREST IN OTHER INVESTMENTSMarketable securities
heldby CIMA £000
heldbyCharitable trusts and
other funds £000
Total £000
At 31 December 2014 at fair value 3,754 2,368 6,122Historical cost 2,767 2,015 4,782At 1 January 2015 at fair value 3,754 2,368 6,122
Additionsoflistedinvestmentsatcost 6 – 6Disposalsoflistedinvestmentsatopeningfairvalue (722) – (722)Unrealisedgainonrevaluationoflistedinvestments 304 (91) 213At 31 December 2015 at fair value 3,342 2,277 5,619
Historical cost 2,438 2,015 4,453At 1 January 2016 at fair value 3,342 2,277 5,619
Additionsoflistedinvestmentsatcost 42 – 42Disposalsoflistedinvestmentsatopeningfairvalue (802) – (802)Unrealisedgainonrevaluationoflistedinvestments 487 275 762At 31 December 2016 at fair value 3,069 2,552 5,621
Historical cost 1,591 2,015 3,606
MarketablesecuritiescompriseunitsinfundsmanagedbySchroderandCo.Limited.Thesefundsarerevalued atthebalancesheetdatetomarketquotedprices.Investmentsareclassifiedasnoncurrentunlesstheyareexpectedtoberealisedwithinoneyear.
The unit funds are invested in the following asset classes2016 £000
2015 £000
Equities 3,529 3,638Multi asset funds 2,091 1,905Cash 1 76
5,621 5,619
The unit funds are invested in the following currencies2016 £000
2015 £000
Sterling 2,552 2,280US Dollar 3,069 3,339
5,621 5,619
28 The Chartered Institute of Management Accountants, Financial statements 2016
Notes to the consolidated financial statements continued
8 INTEREST IN JOINT VENTUREOn1January2012,CIMAformedajointventurewiththeAmericanInstituteofCertifiedPublicAccountants(AICPA),calledtheAssociationofInternationalCertifiedProfessionalAccountants.On31January2012,thejointventurelaunchedadesignation–CharteredGlobalManagementAccountant(CGMA)–whichisavailabletoallCIMAmembersandAICPAmembersworkinginbusiness.
ThejointventurewasregisteredasaVereininSwitzerland.In2016,thejointventureincurredacostofUSD130kdueto thecostofregistrationandprotectionoftheCGMAdesignationinanumberofcountries,andtheCIMAgroupinvested£52kasitsshareofthesecosts.TheVereinhasnosourceofrevenue,andso,asinpreviousyears,theinvestmentwasimmediatelyfullyimpaired.
In2016,CIMAandAICPAmembersvotedtofurtherstrengthentherelationship.Tothisend,thejointventure isintheprocessofbeingwoundup.Newentitieshavebeenincorporated,andthroughthisnewstructure, from1January2017,CIMAandtheAICPAhavealignedtheirstrategy,managementandoperations.
ThenewstructuretakestheformofanotforprofitUSbasedorganisation,alsonamedtheAssociationofInternationalCertifiedProfessionalAccountants(the‘AssociationUS’),andaUKbasedsubsidiary–acompanylimitedbyguarantee–againwiththesamename(the‘AssociationUK’),togethertheAssociation.
From1January2017,CIMA(andtheAICPA)transferreditsemployeesandthemajorityofitsassetsand liabilities(butnottheCIMAPensionandAssuranceScheme)totheAssociation,toenableittomanageits statedobjectives.MemberandstudentsubscriptionincomewillcontinuetobepayabletoCIMA,andafterfulfillingobligationstothepensionscheme,willbepaidtotheAssociation.
Total £000
At 31 December 2014 at fair value –Historical cost 389At 1 January 2015 at fair value –
Additionalinvestmentinjointventureatcost 14Impairmentofadditionalinvestmentinjointventure (14)At 31 December 2015 at fair value –
Historical cost 403At 1 January 2016 at fair value –
Additionalinvestmentinjointventureatcost 52Impairmentofadditionalinvestmentinjointventure (52)Disposalofinvestmentinjointventure –At 31 December 2016 at fair value –
Historical cost –
9 CURRENT ASSETSTheCouncilconsidersthatthecarryingamountsoftheseassetsareapproximatetotheirfairvalues.
a Trade and other receivables comprise:2016 £000
2015 £000
Tradereceivables 3,169 4,057Prepayments 1,338 565Otherreceivables 157 74
4,664 4,696
Theaveragecreditperiodtakenontradereceivablesis30days(2015:31days).Anallowanceof£269khasbeenmadeinrespectofdoubtfultradereceivables(2015:£333k).
The Chartered Institute of Management Accountants, Financial statements 2016 29
9 CURRENT ASSETS continuedb Cash and cash equivalents comprise:
2016 £000
2015 £000
Cash on hand and at bank 11,577 9,760Credit card receipts in transit 2,519 3,055
14,096 12,815
c Interest in other investmentsTotal £000
At 31 December 2014 at fair value 3,019Historical cost –At 1 January 2015 at fair value 3,019
Additionsoflistedinvestmentsatcost –Disposalsoflistedinvestmentsatopeningfairvalue (1,000)Unrealisedgainonrevaluationoflistedinvestments 74At 31 December 2015 at fair value 2,093
Historical cost 2,032At 1 January 2016 at fair value 2,093
Disposalsoflistedinvestmentsatopeningfairvalue (2,093)At 31 December 2016 at fair value –
Historical cost –
ThesecomprisemarketablesecuritiesunitsinamultiassetfundmanagedbySchroderandCo.Limited.Thisfundisrevaluedatthebalancesheetdatetomarketquotedprices.CIMA’slevelofinvestmentinthefundismanagedaspartofitsshorttermworkingcapitalplanning,andassuchtheyareclassifiedascurrentassets.
10 TRADE AND OTHER PAYABLESTheCouncilconsidersthatthecarryingamountsoftheseliabilitiesareapproximatetotheirfairvalues.
Tradeandotherpayablescomprise:
2016 £000
2015 £000
Tradepayablesandaccruals 9,038 4,733Corporationtaxpayable 6 66Othertaxesandsocialsecuritycosts 75 133
9,119 4,932
11 PROVISIONSDilapidations
£000Tax
£000Other£000
Total£000
At 31 December 2014 411 1,250 502 2,163Utilised – (880) (254) (1,134)Released – (370) (139) (509)Provided 28 – 240 268At 31 December 2015 439 – 349 788Utilised – – (339) (339)Released – – (10) (10)Provided 7 – 416 423At 31 December 2016 446 – 416 862
Oftheprovisionsheldatyearend,£416k(2015:£349k)iscurrentand£446k(2015:£439k)isnoncurrent.
30 The Chartered Institute of Management Accountants, Financial statements 2016
Notes to the consolidated financial statements continued
12 SUBSCRIPTIONS AND FEES RECEIVED IN ADVANCEThisprimarilyrepresents2017subscriptionsreceivedin2016.Theyaretreatedasdeferredincome,and willbe releasedtothestatementofcomprehensiveincomein2017inlinewiththesubscriptionperiod.
13 RETIREMENT BENEFITSCIMA sponsors The Chartered Institute of Management Accountants Pension and Assurance Scheme (the‘Scheme’),afundeddefinedbenefitpensionschemeintheUK.TheSchemeisadministeredwithinatrustwhichis legallyseparatefromCIMA.TrusteesareappointedbybothCIMAandtheScheme’smembershipandactintheinterestoftheschemeandallrelevantstakeholders,includingthemembersandCIMA.TheTrusteesarealsoresponsiblefortheinvestmentoftheScheme’sassets.
ThisSchemeprovidespensionsandlumpsumstomembersonretirementandtotheirdependantsondeath.Memberswholeaveservicebeforeretirementareentitledtoadeferredpension.TheSchemeclosedtonewmembersin2002,andtoaccrualofbenefitsin2012.
TheresponsibilityformakinggoodanydeficitwithintheSchemelieswithCIMAandthisintroducesanumberofrisksforCIMA.Themajorrisksare:interestraterisk,inflationrisk,investmentrisk,andlongevityrisk.CIMAandtheTrusteesareawareoftheserisksandmanagethemthroughappropriateinvestmentandfundingstrategies.TheTrusteesmanagegovernanceandoperationalrisksthroughanumberofinternalcontrolpolicies,including ariskregister.
TheSchemeissubjecttoregularactuarialvaluations,whichareusuallycarriedouteverythreeyears.Anactuarial valuationwascarriedoutat1April2015.Theseactuarialvaluationsarecarriedoutinaccordancewiththe requirementsofthePensionsAct2004andsoincludedeliberatemarginsforprudence.Thiscontrastswiththese accountingdisclosures,whicharedeterminedusingbestestimateassumptions.
Theresultsoftheformalactuarialvaluationasat1April2015havebeenprojectedto31December2016by aqualifiedindependentactuary.ThefiguresinthefollowingdisclosureweremeasuredusingtheProjectedUnitMethod.
Followingthe2012valuation,CIMAandtheSchemeagreedaplantoreducetheliabilitytozerooverthetenyearsto2023.ThisisthroughadditionalcontributionsfromCIMAandexpectedinvestmentreturnsontheScheme’sassets.InthecurrentyearCIMA’scontributionsamountedto£1,301k(2015:£1,168k).
GoingforwardtheSchemewillremaininCIMA,while,asexplainedinNote8,themajorityofotherassets andliabilitieswillbetransferredtotheAssociation.TheSchemewillhavefirstcallonmemberandstudentsubscriptionincometoensureitcancontinuetomeetitsobligations.Thishasbeenfullyagreedbetween theSchemeTrusteesandtheCouncil.
a Amounts recognised in the consolidated balance sheet2016 £000
2015 £000
2014 £000
PresentvalueofSchemeliabilities (58,841) (47,253) (50,388)FairvalueofSchemeassets 39,956 35,814 36,098Net amount recognised at year end (18,885) (11,439) (14,290)
AllSchemeassetsarevaluedataquotedmarketprice.
b Amounts recognised in the consolidated statement of comprehensive incomeThecurrentandpastservicecosts,settlementsandcurtailments,togetherwiththenetinterestexpensefortheyearareincludedintheemployeebenefitsexpenseintheconsolidatedstatementofcomprehensiveincome.Remeasurementsofthenetdefinedbenefitliabilityareincludedinothercomprehensiveincome.
The Chartered Institute of Management Accountants, Financial statements 2016 31
13 RETIREMENT BENEFITS continuedb Amounts recognised in the consolidated statement of comprehensive income continued
2016 £000
2015 £000
Service costAdministration expenses 258 234Net interest expense 409 497
Charge recognised in the consolidated statement of comprehensive income 667 731Remeasurements of the net liability:
ReturnonSchemeassets(excludingamountincludedininterestexpense) (5,032) 1,427Loss/(gain)arisingfromchangesinfinancialassumptions 13,460 (509)Gain arising from changes in demographic assumptions – (1,662)Experience gain (348) (1,670)
Charge/(gain) recorded in other comprehensive income 8,080 (2,414)Total defined benefit cost/(gain) 8,747 (1,683)
c The principal actuarial assumptions used2016
%2015
%Liabilitydiscountrate 2.65 3.75InflationassumptionRPI 3.45 3.30InflationassumptionCPI 2.45 2.30Revaluation of deferred pensions
Inservicedeferreds 3.45 3.30Deferreds 2.45 2.30
Increases for pensions in paymentBenefitsaccruedpriorto1April1997 3.00 3.00Benefitsaccruedpriorto1April1997to1April2004 3.65 3.55Benefitsaccruedafter1April2004 3.40 3.30
Proportionofemployeescommutingpensionforcash all members commute all members commute2.25timestheirpension 2.25timestheirpension
atretirementonafixedcommutationfactorof15:1
atretirementonafixedcommutationfactorof15:1
Mortalityassumption–preretirement Light SAPS S2PxA Light SAPS S2PxACMI 2014 CMI 2014
(longtermtrendof1.5%) (longtermtrendof1.5%)Mortalityassumption–malepostretirement Light SAPS S2PMA Light SAPS S2PMA
CMI 2014 CMI 2014(longtermtrendof1.5%) (longtermtrendof1.5%)
Mortalityassumption–femalepostretirement Light SAPS S2PFA Light SAPS S2PFACMI 2014 CMI 2014
(longtermtrendof1.5%) (longtermtrendof1.5%)Future expected lifetime of current pensioner at age 65
Maleaged65atyearend 89.00 88.90Femaleaged65atyearend 90.20 90.10
Future expected lifetime of future pensioner at age 65Maleaged45atyearend 91.00 90.90Femaleaged45atyearend 92.50 92.40
32 The Chartered Institute of Management Accountants, Financial statements 2016
Notes to the consolidated financial statements continued
13 RETIREMENT BENEFITS continuedc The principal actuarial assumptions used continued
ThechoiceofassumptionsistheresponsibilityoftheCouncil,andtheyareagreedwiththeactuary.Theassumptionschosenarethemostappropriateestimatesfromarangeofpossibleactuarialassumptions,which,duetothetimescalecovered,maynotnecessarilybeborneoutinpractice.
d Reconciliation of Scheme assets and liabilitiesLiabilities
£000Assets
£000Total £000
At 1 January 2015 (50,388) 36,098 (14,290)Interestincome/(expense) (1,794) 1,297 (497)Administration expenses – (234) (234)Cost recognised in the statement of comprehensive income (1,794) 1,063 (731)Actuarialgainsandlossesarisinginchangesinfinancialassumptions 509 – 509Actuarial gains and losses arising in changes in demographic assumptions 1,662 – 1,662Other experience items 1,670 – 1,670Returnonassets(excludingamountincludedinnetinterestexpense) – (1,427) (1,427)Remeasurement effects recognised in other comprehensive income 3,841 (1,427) 2,414Contributions from CIMA – 1,168 1,168Benefitspaid 1,088 (1,088) –Net cash 1,088 80 1,168At 31 December 2015 (47,253) 35,814 (11,439)Interestincome/(expense) (1,711) 1,302 (409)Administration expenses – (258) (258)Cost recognised in the statement of comprehensive income (1,711) 1,044 (667)Actuarialgainsandlossesarisinginchangesinfinancialassumptions (13,460) – (13,460)Other experience items 348 – 348Returnonassets(excludingamountincludedinnetinterestexpense) – 5,032 5,032Remeasurement effects recognised in other comprehensive income (13,112) 5,032 (8,080)Contributions from CIMA – 1,301 1,301Benefitspaid 3,235 (3,235) –Net cash 3,235 (1,934) 1,301At 31 December 2016 (58,841) 39,956 (18,885)
e Split of the Scheme’s liabilities by category of membership2016 £000
2015 £000
Activemembers 14,277 10,669Deferred pensioners 26,996 21,160Pensionsinpayment 17,568 15,424
58,841 47,253AveragedurationoftheScheme’sliabilitiesattheendoftheyear 21years 21years
The Chartered Institute of Management Accountants, Financial statements 2016 33
13 RETIREMENT BENEFITS continuedf The major categories of Scheme assets are as follows
2016 £000
2015 £000
Return seekingUKequities 6,520 5,572Overseasequities 8,235 7,178Hedge funds 7,675 7,075
Total return seeking 22,430 19,825Debt instruments
Corporates 15,099 13,627Total debt instruments 15,099 13,627Other
Property 2,245 2,135Cash 182 227
Total market value of assets 39,956 35,814
TheSchemehasnoinvestmentsinCIMAorinpropertyoccupiedbyCIMA.
CIMAexpectstocontribute£1,190ktotheSchemeduringtheyearending31December2017inadditiontotheexpensesincurredovertheyear.
g Sensitivity of the liability value to changes in the principal assumptionsIfthediscountratewas0.1%higher(lower),theSchemeliabilitieswoulddecreaseby£1,340k(increaseby£1,380k),ifalltheotherassumptionsremainedunchanged.
Iftheinflationassumptionwas0.1%higher(lower),theSchemeliabilitieswouldincreaseby£960k(decreaseby£940k).Inthiscalculationallassumptionsrelatedtotheinflationassumptionhavebeenappropriatelyadjusted,thatisthesalary,deferredpension,andpensioninpaymentincreases.Theotherassumptionsremainunchanged.
Iflifeexpectanciesweretoincrease(decrease)byoneyear,theSchemeliabilitieswouldincreaseby£2,700k(decreaseby£2,600k),ifalltheotherassumptionsremainedunchanged.
Ifmemberswereassumednottocommuteanypensionforcashatretirement,theSchemeliabilitieswouldincreaseby£5,100k,ifalltheotherassumptionsremainedunchanged.
ThesesensitivitieshavebeencalculatedtoshowthemovementintheSchemeinisolation,andassumingnootherchangesinmarketconditionsattheaccountingdate.Thisisunlikelyinpractice;forexample,achange indiscountrateisunlikelytooccurwithoutanymovementinthevalueoftheassetsheldbytheScheme.
h Other retirement obligationsAprovisionof£89khasbeenmadeintheCIMASriLankaentityforretirementgratuitiesinconformitywithSLAS16/GratuityActNo.12of1983forallemployeeswhohavecompletedoneyearofservice,andisrecognisedasanexpenseintheperiodduringwhichtheirservicesarerenderedinaccordancewithSLAS16.
14 COMMITMENTS Property rentals
Atthebalancesheetdate,CIMAhadoutstandingcommitmentsforfutureminimumleasepayments,undernoncancellableoperatingleases,whichfalldueasfollows:
£000Notlaterthanoneyear 1,851Laterthanoneyear,andnotlaterthanfiveyears 5,531Laterthanfiveyears 2,991
TheleasecommitmentfortheHeliconistenyearstoSeptember2024,witharentreviewin2019.
34 The Chartered Institute of Management Accountants, Financial statements 2016
Notes to the consolidated financial statements continued
15 FINANCIAL INSTRUMENTSCIMA’sprincipalfinancialinstrumentscomprisemarketablesecuritiesandcharitabletrustsandotherfunds.Themainpurposeofthesefinancialinstrumentsistoraisefinanceforthegroup’soperationsincludingtheoperationsofitscontrolledcharities.Thegrouphasvariousotherfinancialinstrumentssuchastradereceivables,tradepayablesandaccrualsthatarisedirectlyfromitsoperations.At31December2016andat31December2015 thegrouphadnosignificantderivatives.Foreigncurrencyexchangecontractsarefurtherdiscussedinsectiondbelow.Themainfinancialrisksforthegrouparecreditrisk,liquidityrisk,currencyriskandinvestmentrisk.
a RisksCredit riskTheriskoncashbalances,depositsandavailableforsaleinvestmentsismanagedinariskaversemanner,beingheldwithUKclearingbankswithacreditratingofatleastA.Amaximumof£5mmaybeinvestedperbank.Thetradecreditriskismainlyattributabletosubscriptionandexamfeeincome.Thereisnoconcentrationofriskinthisarea,asincomeisdiversifiedoveralargenumberofmembersandstudents.
Currency riskCIMA operates in a number of countries, has trade commitments in a number of currencies and, therefore, has someexposuretocurrencymovements.Incomeislargelysterlingdenominated,whilenon-sterlingexpenditureaccountsfor22%oftotalexpenditure.CIMAcontinuestoreviewcurrencyriskonaregularbasisandwilltakeactiontohedgeriskasappropriate.SeeNote15dforasummaryofhedgesinplaceatyearend.
Investment riskInvestmentincome,includinggainsondisposals,roseby£204kfrom£539kto£743k.Budgetsareprepared onaprudentbasisandincomefrominvestmentsisnotreliedonforCIMA’songoingactivities.Investmentsarereviewedonaregularbasis.A10%increaseinfairvalueatyearendwouldresultinariseof£562kinthevalueofinvestmentsandacorrespondingriseinthefairvaluereserve;adecreaseof10%wouldresultinafallof£562kinthevalueofinvestments,andacorrespondingfallinthefairvaluereserve.
Liquidity riskCIMA’sbusinessmodel,withsubscriptionfeesfallingdueon1Januaryandexaminationfeesbeingduebeforeexameventcommitmentsaremade,resultsinworkingcapitalrequirementsbeingfullyfundedinadvance.ThisresultsinahighproportionofCIMA’sassetbasebeingcashondeposit.Thesedepositsareactivelymanagedtoensurethatworkingcapitalrequirementsaremetatalltimes.
Thetotalgrosscontractualundiscountedcashflowsoffinancialliabilitiesfalldueasfollows.
31 December 2016
On demand or within
1 year £000
1-2 years £000
2-5 years £000
More than 5 years
£000Total £000
Tradeandotherpayables (9,119) – – – (9,119)Provisions (416) – – (446) (862)
(9,535) – – (446) (9,981)
31 December 2015
On demand orwithin
1year £000
1-2years £000
2-5years £000
More than 5years
£000Total £000
Tradeandotherpayables (4,932) – – – (4,932)Provisions (349) – – (439) (788)
(5,281) – – (439) (5,720)
The Chartered Institute of Management Accountants, Financial statements 2016 35
15 FINANCIAL INSTRUMENTS continuedb Summary of financial instruments
31 December 2016
Loans and receivables
£000
Loans at amortised
cost £000
Available for sale assets
£000Total £000
AssetsNon current
Marketable securities – – 3,069 3,069Charitable trust funds – – 2,552 2,552Total – – 5,621 5,621
CurrentMarketable securities – – – –Tradeandotherreceivables 4,664 – – 4,664Cashandcashequivalents 14,096 – – 14,096Total 18,760 – – 18,760
LiabilitiesCurrent
Tradeandotherpayables – (9,119) – (9,119)Provisions – (416) – (416)Total – (9,535) – (9,535)
Non currentProvisions – (446) – (446)Total – (446) – (446)
Net financial assets/(liabilities) 18,760 (9,981) 5,621 14,400
31 December 2015
Loans and receivables
£000
Loans at amortised
cost £000
Availableforsale assets
£000Total £000
AssetsNon current
Marketable securities – – 3,342 3,342Charitable trust funds – – 2,277 2,277Total – – 5,619 5,619
CurrentMarketable securities – – 2,093 2,093Tradeandotherreceivables 4,057 – – 4,057Cashandcashequivalents 12,815 – – 12,815Total 16,872 – 2,093 18,965
LiabilitiesCurrent
Tradeandotherpayables – (4,932) – (4,932)Provisions – (349) – (349)Total – (5,281) – (5,281)
Non currentProvisions (439) (439)Total – (439) – (439)
Net financial assets/(liabilities) 16,872 (5,720) 7,712 18,864
36 The Chartered Institute of Management Accountants, Financial statements 2016
Notes to the consolidated financial statements continued
15 FINANCIAL INSTRUMENTS continuedc Fair value hierarchy
Level1:Thefairvalueoffinancialinstrumentstradedinactivemarketsisbasedonthequotedbidpriceat thereportingdate.
Level2:Thefairvalueoffinancialinstrumentsnottradedinanactivemarketisdeterminedusingobservablemarket dataforallsignificantinputs.
Level3:Thefairvalueoffinancialinstrumentsnottradedinanactivemarketwhereatleastonesignificant inputcannotbedeterminedusingobservablemarketdata;thisincludesanyunlistedequitysecurities.
Availableforsalefinancialassetsarecarriedatfairvalue.Marketablesecuritiesandcharitabletrustsareclassifiedasalevel1fairvaluemeasurementfordisclosurepurposes,asthefairvalueisdeterminedbased onquotepricesinactivemarketsforidenticalassets.Thecarryingvalueofallotherassetsandliabilitiesapproximatesfairvalue.
d DerivativesCIMA took out foreign exchange contracts in 2016 to mitigate against potential losses on some grant expenditure to bepaidouttonon-UKofficesin2017;CIMAcontinuestoreviewcurrencyrequirementsandexchangeriskonanongoingbasis.
2016 £000
2015 £000
Valueofderivativesatdealrate (2,753) (4,463)Valueofderivativesatyearendspotrate 2,600 4,412Interest rate differential (3) 31Loss recognised in the consolidated statement of comprehensive income (156) (20)
The Chartered Institute of Management Accountants, Financial statements 2016 37
16 RELATED PARTIESa ThegroupfinancialstatementsconsolidatetheaccountsofCIMA,itswhollyownedsubsidiaryundertakings,and
thecharitabletrustsandotherfundsunderthecontrolofCIMAlistedbelow.Thesefinancialstatementsexcludeallbalancesandtransactionsthatareeliminatedonconsolidation.CIMAmaintainsbranchofficesinIndiaandPakistan,andotherrepresentativeofficesinanumberofcountrieswhicharenotlistedbelowastheyarenotmaterialtothegroupfinancialstatements.
Name Countryofincorporation Principalactivity CIMAownershipThe Chartered Institute of Management Accountants
UK
CIMA Enterprises Limited UK Membershipofjointventure 100%Global Management Accountants inBusinessLimited
UK Membershipofjointventure 100%
The Chartered Institute of Management AccountantsBenevolentFund
UK Toprovideassistancetomembers and ex-members, and their families, in times ofhardship.
100%
TheAnthonyHowittLectureTrust UK Toadvanceeducationinaccountancyandrelatedsubjects.
100%
CIMA Australasia Limited Australia Membershipservices 100%Chartered Institute of Management AccountantsBangladeshbranch
Bangladesh Membershipservices 100%
CIMA China Co Limited China Membershipservices 100%The Chartered Institute of Management Accountants
Hong Kong Membershipservices 100%
Chartered Institute of Management AccountantsRepublicofIrelandDivision
Ireland Membershipservices 100%
CIMASEAsiaSdnBhd Malaysia Membershipservices 100%The Chartered Institute of Management Accountants
Dubai Membershipservices 100%
CIMA Singapore Pte Limited Singapore Membershipservices 100%The Chartered Institute of Management Accountants NPC
South Africa Membershipservices 100%
The Chartered Institute of Management Accountants Sri Lanka
Sri Lanka Membershipservices 100%
b Joint venturesAsperNote8,in2012CIMAformedajointventurewiththeAmericanInstituteofCertifiedPublicAccountants(AICPA),calledtheAssociationofInternationalCertifiedProfessionalAccountants.ThejointventurewasregisteredasaVereininSwitzerland,andisintheprocessofbeingwoundup.TherearefivemembersoftheVerein,threesubsidiariesoftheAICPA,andtwosubsidiariesofCIMA–CIMAEnterprisesLimitedandGlobalManagementAccountantsinBusinessLimited;throughthisownershipstructure,CIMAowns40%ofthejointventure.ThejointventureisgovernedbyaManagementBoard,comprisedoffourpersonsdesignatedbyCIMAandfourbytheAICPA.
38 The Chartered Institute of Management Accountants, Financial statements 2016
Notes to the consolidated financial statements continued
16 RELATED PARTIES continuedc Dormant companies
CIMAholds100%ofthe100issued£1ordinarysharesofTheCorporateSocietyofFinancialManagementLimited,100%ofthetwoissued£1ordinarysharesofTheInstituteofCostandWorksAccountantsLimited,100%oftheoneissued£1ordinaryshareinCGMALimited,and100%ofthe100£1issuedordinaryshares ofGlobalProfessionalAccountantsinBusinessLimited,ProfessionalAccountantsinBusinessLimited,ManagementAccountantsinBusinessLimited,andCIMAChinaLimited.Allthesecompanieswere dormantintheperiodscoveredbythesefinancialstatements.
d General Charitable TrustTheGeneralCharitableTrust(GCT)isaregisteredcharity,andwasformedfortheadvancementofeducation inthesubjectsofaccounting,managementaccounting,electronicdataprocessing,costing,auditing,taxation,appliedeconomics,finance,andotherrelatedsubjectsofaneducationalnature.
DuringtheyearCIMAmadegiftaiddonationsof£100k(2015:£300k)totheGCT,andtheAmericanInstituteofCertifiedPublicAccountantsmadedonationsof£149k(2015:£126k).CIMAalsoprovidedsupportserviceswithanotionalvalueof£97k(2015:£98k).AttheendoftheyearthenetassetsoftheGCTwere£224k(2015:£150k),whichincluded£43k(2015:£10k)payabletoCIMA.
17 SUBSEQUENT EVENTSAsexplainedinNote8,in2016CIMAandAICPAmembersvotedtofurtherstrengthentherelationship.Tothisendtheexistingjointventureisintheprocessofbeingwoundup.Newentitieshavebeenincorporated,andthroughthisnewstructure,from1January2017,CIMAandtheAICPAhavealignedtheirstrategy,managementandoperations.
ThenewstructuretakestheformofanotforprofitUSbasedorganisation,namedtheAssociationofInternationalCertifiedProfessionalAccountants(the‘AssociationUS’),andaUKbasedsubsidiary–acompanylimitedbyguarantee–withthesamename(the‘AssociationUK’),togethertheAssociation.
From1January2017,CIMA(andtheAICPA)transferreditsemployeesandthemajorityofitsassetsandliabilities(butnottheCIMAPensionandAssuranceScheme)totheAssociation,toenableittomanageitsstatedobjectives.MemberandstudentsubscriptionincomewillcontinuetobepayabletoCIMA,andafterfulfillingobligationstothepensionscheme,willbepaidtotheAssociation.
The Chartered Institute of Management Accountants, Financial statements 2016 39
MEETINGS ATTENDED BY MEMBERS OF CIMA’S COUNCIL AND EXECUTIVE COMMITTEE(January to December 2016)
NameElectoral
Constituency Council Executive NameElectoral
Constituency Council ExecutiveAgate M 11 6/6 Makepeace G # 3 0/1Ash P 11 6/6 4/4 Marshall S ## co 6/6BainbridgeSpringAP# 1 1/1 McCue S # 8 1/1 2/2BarnesD# 4 1/1 2/2 McGunnigle A 3 5/5BarrP+ 8 5/5 McMasters K nc co 6/6BeedhamR 6 6/6 4/4 MelanconB nc co 6/6BoffeyA 6 6/6 Miskin A p 6/6 6/6BraggK 3 5/6 MistryH+ 4 5/5Chan F + 16 5/5 Muchhala M 1 6/6Chan K K C # 15 1/1 NewburyK 6 6/6ClackworthyS 12 5/6 O’Connor T # 9 1/1Connaughton L + 9 4/5 Okanta-Ofori K ## 4 1/6DaviesN 2 6/6 OwenJ+ 1 5/5DavisonN 5 6/6 Panditharatne C 19 6/6 6/6Edirisinghe R + 14 3/5 Parker H 17 6/6EowKH# 16 1/1 ParsonsSB# 2 1/1EssayahK 12 5/5 RatnayakeA 18 6/6 6/6Fitzgerald L co 4/6 Richardson E M 2 6/6 4/4Goddard A + 15 5/5 Robertson I # co 1/1GrahamJ+ 6 4/5 Sharp R 11 6/6Hans A 1 6/6 Stahlin P nc co 5/6 6/6Harding A s 2/2 Stanford D dp 6/6 6/6Hurst S co 6/6 Stapleford S 3 6/6JacksonN co 5/6 5/6 SwientozielskyjSvp 6/6 6/6JessettN+ 4 4/5 Tarr D 10 6/6JohnsonD+ 2 5/5 TaylorA 7 6/6Kanaka M # 14 1/1 TaylorL 12 5/6 6/6Karkaria P co 5/6 TheagarajahR co 4/6KellyK nc co 4/6 TilleyCBs** 4/4LowneyM+ 3 5/5 WaymentS 11 1/6Luck K F # co 1/1 1/2 WestonJD 5 6/6Mack D co 5/6 WhiteheadH 5 6/6Madden M ipp co 6/6 6/6 ZhengJ co 6/6Macnab A 7 6/6
Keyp President * Non Council Memberdp DeputyPresident ** SteppeddownasChiefExecutive,CIMA31.07.16vp VicePresident *** Steppeddownasat31.01.17pp Past President + AppointmenteffectivefromAGM2016ipp Immediate Past President # LeftCouncilorExecutiveCommitteeatAGM2016co Co-opted ## LeftCouncilorExecutiveCommitteeDecember2016nc Non-CIMA Member S CIMA Staff Member
CIMA’s Council and Executive Committee members
40 The Chartered Institute of Management Accountants, Financial statements 2016
CIMA ELECTORAL CONSTITUENCY1 CentralLondon&NorthThames2 SouthWestEngland&SouthWales3 EastMidlands&EastAnglia4 WestMidlands5 North East England6 NorthWestEngland&NorthWales7 Scotland8 Northern Ireland9 Republic of Ireland10 East,WestCentral&SouthernAfrica11 Central Southern England12 South East England14 South Asia15 North Asia16 South East Asia17 Europe,NorthAfrica&MiddleEast18 The Americas19 Australasia
HONORARY OFFICERSPresident AndrewMiskinDeputyPresident DavidStanfordVicePresident SteveSwientozielskyjImmediate Past President MyriamMadden
CIMA’S GOVERNANCE COMMITTEESExecutive Committee Appointments Committee Audit and Risk Process CommitteeChairman AndrewMiskin p Chairman MyriamMadden ipp Chairman Gordon Grant* pp
DavidStanford dp Keith Luck* pp ViceChairman George Glass* ppSteveSwientozielskyj vp AndrewMiskinp JasonBoxer*
MyriamMadden ipp DavidStanford dp Ian Kleinman*Paul Ash SteveSwientozielskyj vp Kris McMasters nc
BobBeedham Mike Agate SimonBittlestone*AmalRatnayake DaveMack Richard Sharp
Elaine Richardson HillaryParkerLouiseTaylorNickJackson
Chandana PanditharatnePaul Stahlin
AndrewHarding*Secretary Gail Stirling s Secretary BaljeetBasra s Secretary BaljeetBasra s
CIMA’s Council and Executive Committee members continued
The Chartered Institute of Management Accountants, Financial statements 2016 41
CIMA’S POLICY COMMITTEESGlobal Markets Committee Technical Committee Professional Standards CommitteeChairman AmalRatnayake Chairman LouiseTaylor Chairman BobBeedhamViceChairman Debbie Tarr ViceChairman HowardWhitehead ViceChairman KarenNewbury
KasiaCiezkowska* CharlesBatchelor* AnnaCorry*NicDavison AnthonyBoateng* NigelDavies
Chandrin Fernando* Stuart Chaplin* Peter Fullam*AtanasJelev* Louise Connaughton NigelIyer*
NickJessett Alasdair Macnab DavidJohnsonPhillie Karkaria Sheena Mathers* MichaelLowney
AlistairTaylor JeremyOsborn* DuncanSwift*RajendraTheagarajah StuartWayment
MahesWickramasinghe*Mirella Zhang*
Secretary JohnWindle s Secretary Dr Noel Tagoe s Secretary Gail Stirling s
Lifelong Learning Committee Members’ Services CommitteeChairman Paul Ash Chairman Elaine Richardson ViceChairman
Professor Lin Fitzgerald
ViceChairman Sue Stapleford
PatrickBarr Olorunnisola Abiodun*JimCallander* TonyBoffey
Francis Chan AmarjeetHansStephanieClackworthy Melanie Kanaka*
RaviEdirisinghe AndrewMcGunnigleJohnGraham Yasmin Mohd Ramzi*
TrevorHassall* Mustafa MuchhalaNiallHennessy* JohnWeston
VictorOlowe* JohnZhengTimStewart*
Secretary Dr Noel Tagoe s Secretary FionaHarvey s
SENIOR LEADERSHIP TEAM
ChiefExecutive AndrewHarding sManaging Director – Europe, Africa and Asia Irene Teng sChiefFinancialOfficer JohnWindle sExecutiveDirector–Education Dr Noel Tagoe sExecutiveDirector–MarketingandSales FionaHarvey sExecutiveDirector–Governanceand Professional Standards Gail Stirling sExecutiveDirector–ExternalAffairs TonyManwaring s***
42 The Chartered Institute of Management Accountants, Financial statements 2016
OTHER COMMITTEES, BOARDS AND TRUSTSBenevolent Fund Committee General Charitable Trust Anthony Howitt Lecture TrustChairman JohnWeston Chairman GlynnLowth* pp Chairman AndrewMiskin pViceChairman Paul Ash ViceChairman Rod Hill* pp DavidStanford dp
DerekBarnes* BobBeedham SteveSwientozielskyjvpFrankGuilfoyle* IvanCourt* MyriamMadden ipp
Sue Hoof* FrancescaWindsor*DaveMack
AndrewOxley*RobertIWilson(Bob)*
Secretary Caroline Aldred s Secretary Robert Spencer s Secretary JohnWindle s
CIMA Enterprises Ltd (CEL)Global Management Accountants in Business Ltd
Association of International Certified Professional Accountants
Director and ChiefExecutive AndrewHarding s Director AndrewHarding s Chairman MyriamMaddenippDirector CIMA(CorporateBody) Director CIMA(CorporateBody) DeputyChair KennethKelly
MarkLewis*BarryMelanconKris McMasters
AndrewMiskin p CompanySecretary BaljeetBasra s
CompanySecretary BaljeetBasra s
INDEPENDENTLY APPOINTED CONDUCT COMMITTEESInvestigation Committee Disciplinary Committee Appeal CommitteeChairman ColetteNeville nc Chairman SarahBaalham nc Chairman JulesGriffiths ncViceChairman GrahamHumby nc ViceChairman CarolynTetlow nc ViceChairman Peter Cadman nc
Morounke Akingbola* BrynAnstice nc Malcolm Cornberg*JohnAnderson nc JosephCampbell* JonathanPage nc
KeithBrims* Paul Carcone* DanielFarrow*PaulBrittain* Susan Gallone* Karen Rea nc
VictoriaIsaac nc HuwJones*ChrisMatthews-Maxwell nc JamesKellock nc
Diana Reid nc Paul Pharaoh ncDavidRobbins* MichaelReddy nc
HywelTudor* SandraRyder*HelenRilley nc
Stephen Thacker ncIanWatts*
CIMA’s Council and Executive Committee members continued
The Chartered Institute of Management Accountants, Financial statements 2016 43
Board or committee CIMA representativeCCAB Ireland (CCABI) Chairman Sean Shine*Deputy Chairman Sharon McCue*MiP Chair Tony Manning*Head Roger Acton*
International Federation of Accountants (IFAC)Council Andrew Miskin pBoard Observer Keith Luck*
Myriam Madden ippProfessional Accountants in Business Committee Chairman Charles Tilley**Professional Accountants in Business Committee Member Stuart Chaplin*International Ethics Standards Board for Accountants (IESBA) Claire Ighodaro*Small and Medium Practices Committee
Berend Van Aswegen*
Professional Accountancy Body Development Committee Devika Mohotti*
Board or committee CIMA representativeAmerican Institute of Certified Public Accountants (AICPA) Myriam Madden ipp
Accountancy EuropeGeneral Assembly Andrew Miskin p
Andrew Harding sAccounting Working Party Charles Batchelor*Company Law and Corporate Governance Working Party David Hackett sCorporate Reporting Policy Group Nick Topazio s
Council of the Association of Accounting Technicians (AAT)3rd out of 3 years (1st term) Linda Kumbemba*2nd out of 3 years (1st term) Kevin Bragg3rd out of 3 years (3rd term) Reg Wood*
OTHER SENIOR APPOINTMENTS HELD BY CIMA MEMBERS/REPRESENTATIVES
FRC Reporting Lab Steering Group Member Charles Tilley**FRC Culture Steering Group Member Charles Tilley**PwC Building Trust Awards Judging Panel Chairman Charles Tilley**International Integrated Reporting Council Member Charles Tilley**Prince of Wales Accounting for Sustainability Advisory Council Member Charles Tilley**HM Treasury Joint VAT Consultative Committee Nic Davison
University CourtsUniversity of Bath Elaine RichardsonUniversity of Lancaster Richard Kenworthy*Loughborough University Glynn Lowth* ppUniversity of Surrey Mike AgateUniversity of Stirling Conference Jim Callander*University of Cardiff Nigel DaviesCity University, London Gulzari Babber* pp
CIMA REPRESENTATIVES ON EXTERNAL BOARDS AND COMMITTEES
CIMA regional offices:
Africa4th floor, 54 Melrose Boulevard Melrose Arch Melrose North Johannesburg, South Africa T: +27 (0)11 788 8723 [email protected]
Middle East, South Asia and North Africa356 Elvitigala Mawatha Colombo 5 Sri Lanka T: +94 (0)11 250 3880 [email protected]
South East Asia and AustralasiaLevel 1, Lot 1.05 KPMG Tower, 8 First Avenue, Bandar Utama, 47800 Petaling Jaya, Selangor Darul Ehsan, Malaysia T: +60 (0) 3 77 230 230/232 [email protected]
EuropeThe Helicon One South Place London EC2M 2RB United Kingdom T: +44 (0)20 8849 2251 [email protected]
North Asia1508A, 15th floor, AZIA Center 1233 Lujiazui Ring Road Pudong Shanghai, 200120 China T: +86 (0)21 6160 1558 [email protected]
CIMA also has offices in the following locations:Australia, Bangladesh, Botswana, China, Ghana, Hong Kong SAR, India, Ireland, Malaysia, Nigeria, Pakistan, Poland, Russia, Singapore, South Africa, Sri Lanka, UAE, UK, Zambia and Zimbabwe.
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