HONG KONG
annual
review
2010 Creating sustainable
business growth
CIMA Hong Kong Annual Review 2010
2010 at a glance:
107,613
83,487
Exam papers taken
Members
252
99,264
Exam centres used
Students
£43.4m
208
Income
Countries
Member population
Student population
2010
83,487
2010
99,264
2009
79,757
2009
92,909
2008
76,363
2008
91,512
01 Welcome to CIMA 02 Divisional president’s message 03 Divisional director’s statement 04 An overview 15 Summary accounts 29 Contact details
CIMA Hong Kong Annual Review 2010
CIMA is where business and finance meet. Chartered Management Accountants are strategic leaders and business partners who enable organisations to make business-critical decisions. Organisations in the private, public and not-for-profit sectors turn to our members to build effectiveness; they cover broad issues such as enterprise performance, operations management and financial management and stewardship.
Our purpose The ever greater employability of Chartered Management Accountants. Our vision Chartered Management Accountants driving the world’s successful organisations. Our mission To be the first choice for employers in the qualification and development of management accountants. CIMA Hong Kong Annual Review 2010
Contents
01
Divisional president's message
02
A message from your president
Following on from the Hong Kong market review carried out in 2009, additional resources have been provided to promote the science of management accounting in Hong Kong. The promotion has resulted in strong growth for CIMA in Hong Kong on all fronts; seeing positive increase in our new student recruitment as well as overall growth in our student and membership population. The strategies set in 2009 are achieving encouraging results and we will continue to put further efforts in rolling them out in the forthcoming year to ride on their success.
Finance Director of Warner Bros), Amy Lam (Group Finance Director of Jardine Shipping Services), Irelan Tam (Regional Finance Director of Johnson & Johnson Hong Kong) and Jenny To (Managing Director of Pernod Ricard). They are amongst some of our many eminent female CIMA business leaders who have successfully overcome ongoing barriers in their career development and reached the top in Asia at the end. In the coming years, I have no doubt there will be many more successful stories of our lady members that we can share with you.
In the past, management accountancy was seen more as a male-orientated profession, perhaps ensuing from our historical costing and manufacturing origin. This perhaps, to a certain extent, was reflected in our membership structure with approximately 40% of our members being female and a relatively lesser representation of women than men occupying senior business positions. This issue was highlighted in one of CIMA thought leadership pieces 'Breaking glass - Strategies for tomorrow's leaders' during the year. From Hong Kong, I would like to take this opportunity to particularly thank four of our members who took part in this report; they are Theresa Chan (Corporate
As the Hong Kong economy becomes more interlinked with the mainland, we see more and more members and students working and travelling between the two places. This provides many challenges as well as opportunities to us. To prepare ourselves to cope with those demands, CIMA is transforming into a more regional organisation to take on those challenges and opportunities. With the directive from the CIMA Council, the global governance structure will move towards the formation of regional boards to provide the necessary speed, autonomy and empowerment essential for meeting the council's objectives. Closer to us, we will see the formation of three boards
CIMA Hong Kong Annual Review 2010
namely the Australasia Regional Board, the South East Asia Regional Board and the North Asia Regional Board later this year. The final details have yet to be confirmed and all our members will be kept informed of the latest development over time. It has been my honour to be the divisional president of the CIMA Hong Kong division this year. I would like to take this opportunity to thank all my divisional council members and the various committees for voluntarily and whole-heartedly helping to promote and grow the division together. Not only have they devoted their valuable time to CIMA, everyone has also given more than their best efforts in being the honourable ambassadors in this region to promote management accountancy and financial management for the institute. Last but not least, I would like to express my deepest gratitude to Leo Cheung, our immediate past divisional president, for his valuable service to the division as he will be retiring from the divisional council after the AGM in 2011. Thank you all.
Paul Chan FCMA Divisional President, Hong Kong
From the divisional director
In the past two years we have be concentrating our efforts on communicating the CIMA differentiation, to enable the public, employers, tertiary students and potential students to understand what management accountancy is and how our members differ from other accountants. This message has received good feedback especially from two groups; financial accountants wanting to expand their career horizons into other roles, and aspiring senior managers who would like to be more financially literate in-order to excel their career.
On a personal front this year been a very rewarding experience. I have been able to see how CIMA is able to help people’s careers not only upwards but also sideways. Members and students are moving into roles where the skill set learnt in the CIMA training equips them with the knowledge they need. CIMA is regarded as one of the most relevant to business qualifications as we update the syllabus every four years with feedback from over 2,000 employers. This reflects how our qualification trains people to go beyond accountancy and we now truly occupy the space where business and finance meet.
To facilitate these groups of prospective students, in 2010 we introduce a special gateway assessment designed to assess MBA graduates and members of other accounting bodies for direct entrance into the strategic level papers. The assessment looks at different areas taken from the operational and managerial level and serves as a safeguard to ensure that the students will be able to pass the final papers. We are grateful to Hong Kong University SPACE, our partners who have designed a preparatory course for these students to aid their studies. In the coming years we will expect to see more students joining CIMA via these routes.
Hong Kong has continued to shine within CIMA. Our student Amit Chhabra from Johnson Electric scored the highest mark globally in the gateway assessment. Alan Wong from Jardine Matheson came third globally in the performance strategy paper and Richard Bellingham came sixth globally in the financial operations paper. In general the passing marks for the operational and managerial papers in Hong Kong have been higher than the global average for the second year running. This has been achieved by not only attracting students that are capable but also the additional student support resources that have been invested in
the past few years. In the CIMA Global Business Challenge where over 2,000 groups of international university students compete in a business case study, the Hong Kong team won the accolade for the second year running, demonstrating again that the territory is producing some of the finest financial leaders in the world. Lastly, I would also like to thank the divisional council for their direction and my devoted team in Hong Kong for all their enthusiasm and hard work in delivering the excellent services to all our stakeholders.
Damian Yip Divisional Director, Hong Kong
CIMA Hong Kong Annual Review 2010
Divisional director’s statement
03
04
Member services
Activities 8 - 10 January 2010 Pearl River Delta trip CIMA together with other accounting bodies joined a study trip to PRD organised by the Accounting Resources Centre. A group of 41 participants visited government and CICPA to network, build contact points and exchange views on the region.
12 January 2010 Fellow application workshop A fellowship application workshop was conducted by Mr Richard Kenworthy FCMA, Divisional Vice President. ACMAs who were interested to become fellow members of the institute where able to hear directly from the ex-assessor on the requirements and benefits of becoming a fellow. 23 February 2010 CIMA Hong Kong spring cocktail A spring cocktail reception was organised at the British Consulate to celebrate the year of Tiger.
CIMA Hong Kong Annual Review 2010
20 March 2010 Joint networking trip with CMA Canada A leisure hiking to High Island Geo Trail was jointly organised with CMA Canada. 8 April 2010 CIMA annual dinner To mark this special occasion the CIMA president, Mr Aubrey Joachim was able to fly in from Australia to be with us. Mr Frankie Lam ACMA, Acting Deputy Director of Accounting Services, The Treasury of HKSAR was our honourable guest for the night. Other guest included Mr Chai, Division Chief of the Central Government Liaison Office, and other representatives from the educational institutions and professional bodies, all of which added more colours to the event.
25 June 2010 CIMA Hong Kong 26th Annual General Meeting At the CIMA 26th Annual General Meeting Mr Paul Chan, Mr Richard Kenworthy and Dr Li Wing Sun were elected as the Divisional President, Divisional Deputy President and Divisional Vice President of CIMA Hong Kong for the term 2010-2011 respectively. Ms Rachel Cheung, Mr Francis Chiu, Ms Jackie Ko and Ms Amy Lam were elected to the divisional council serving a three year term.
9 July 2010 CIMA-Polytechnic University of Hong Kong reunion The night bought together many members who had studied at the Polytechnic University of Hong Kong. Members were able to meet up with many ‘old’ friends and also meet some newer ones. 11 July 2010 Joint networking trip with CGA A leisure boat trip to Sai Kung was jointly organised with CGA.
Member services continued
4 September 2010 Joint networking trip with CGA A leisure Firefly night was jointly organised with CGA.
11 March 2010 Supported by CIMA the ‘International tax planning solutions’ forum was organised by the China Economic Review.
9 April 2010 Joint CPD seminar with HKICPA on ‘The future of governance in Asia’ by Mr Aubrey Joachim, CIMA President.
7 December 2010 CIMA Hong Kong Christmas party The party was held at the Rosedale Hotel in Causeway Bay, selected members were invited to join the party as a token of appreciation for their contribution to the division in 2010.
26 March 2010 Joint seminar with IBM on ‘A scorecard management approach in manufacturing’ by Dr WS Li, divisional council member.
10 April 2010 Joint seminar with CUHK SCS on ‘Global perspective on governance: lessons from east to west’ by Mr Aubrey Joachim, CIMA President.
12 December 2010 Leisure trip for CIMA students and members A leisure trip and BBQ lunch was organised for CIMA members, students and their relatives and friends in Tai Po and Fanling area. 26 March 2010 Joint CPD seminar with HKICPA on ‘Key processes of a company listing and the role of the Non-Executive Director’ by Mr. Harby Janagol FCMA, Mr. Derek RothBiester and Mr. Dennis Ow.
CPD events
17 April 2010 Joint seminar with AIA, CGA, CMA Canada, BDO and Hong Kong Polytechnic University on ‘New Hong Kong financial reporting standard (HKFRS) for private entities – are you prepared for this new financial reporting option?’ by Mr Stephen Chan, Partner and Head of Technical and Training, BDO Limited CPA.
4 March 2010 Joint CPD seminar with StepStone on ‘How to recruit a right candidate in the selection process’ by Dr Aidan Goddard, divisional council member and Dr Erik Schmit, Managing Director of StepStone China. 29 March 2010 Supported by CIMA PolyU SPEED organised a seminar on ‘Hong Kong as a risk management system for sustainability: a symposium’.
CIMA Hong Kong Annual Review 2010
An overview
05
06
Member services continued
28 June 2010 Joint CIMA-Bradford University networking seminar on ‘Economics in business: how understanding modern micro-economics can help managers’ by Mr Simon Delay organised with RDI.
9 September 2010 Joint seminar with ICAC on ‘From corruption prevention to ethics management’.
18 October 2010 Joint CPD seminar with HKICPA on 'The emerging strategic role of the management accountant' by Mr Aubrey Joachim, Immediate Past President of CIMA. 19 October 2010 Joint CPD seminar with HKICPA on 'The finance professionals role in risk management' by Mr Aubrey Joachim, Immediate Past President of CIMA.
13 September 2010 CPD networking event on ‘Private and commercial uses of private trust’. 28 July 2010 Supported by CIMA the ‘Post-expo economy’ organised by the China Economic Review. 31 July 2010 Joint seminar with AIA, CGA on ‘Resolving shareholder disputes - negotiation mediation litigation’.
17 September 2010 Supported by CIMA the ‘Practitioner Forum - Islamic Finance & Dubai Debt Issues’ organised by CUHK SCS. 29 September 2010 Joint seminar with IBM on 'Optimising Finance - driven Performance Management by Consolidation - Reporting and Analytics'.
CIMA Hong Kong Annual Review 2010
19 October 2010 Joint seminar with CPA Australia and HKU SPACE on 'The role of finance in business strategy' (Professional Seminar Series) by Mr Aubrey Joachim, Immediate Past President of CIMA.
Newsletter Seven issues of the CIMA Hong Kong Division e-newsletter were sent to all CIMA members and students to keep them posted on local news and events.
Student support Induction seminars
T4 case study session
To facilitate better understanding of CIMA among all news students, four induction seminars were conducted in February and August. The sessions provided information on CIMA, the study aids available and the administrative procedures for examinations.
A T4 case study session for students to better prepare for the examination was conducted by Ms Cindy Yeung, Manager, Finance Department of Cable TV and Mr Jasper Chung ACMA, management accountant, Richemont Asia Pacific.
Courses CIMA revision courses for CIMA Paper P3 and T4 were jointly organised by CIMA and HKICPA in April and October. Preparatory courses on papers E1, E2, E3, F1, F2, F3 were held at CIMA office in March, September. In addition to these courses organised by CIMA, students also enrolled on the joint courses offered by The CUHK SCS and CIMA.
Overview session CIMA organised free overview sessions on Paper E2, E3 and F3 for all students in which, the lecturers gave an overview of all the topics for each paper and brief them on how topics are inter-related. These sessions are intended to help student make a study plan at least three months before the examinations.
Study materials The division continues to offer bookpurchasing service on the official learning materials which include the CIMA learning system, exam practice kit and revision card published by CIMA Publishing with Elsevier. Students were also encouraged to us the online study modules cimastudy.com
Practical experience requirement workshop A practical experience requirement workshop was organised on 18 May and 26 August. The workshop helped students to understand the requirements of work experience required for membership and the procedure needed when applying for membership. Mr Richard Kenworthy, Divisional Vice President and Mr Henry Lau, ACMA were invited to share their experience with all CIMA strategic level students.
CIMA Hong Kong Annual Review 2010
An overview
07
08
Promoting and developing the science of management accounting
Scholarship awards CIMA scholarships have been awarded to the City University of Hong Kong, Hong Kong Baptist University, Hong Kong Community College, Hong Kong Institute of Vocational Education, Lingnan University, The Hong Kong Polytechnic University and The University of Hong Kong for students achieved the highest scores in ‘Cost Accounting’ or ‘Management Accounting’ subjects in their courses. Representatives from CIMA were invited to join the following prize presentation ceremony. 19 March 2010 Staff attended the City University of Hong Kong scholarship and prize presentation ceremony.
24 April 2010 Mr Leo Cheung, Divisional President, CIMA Hong Kong attended the innovative entrepreneur of the year 2010 opening ceremony 2010 organised by the City Junior Chamber .
Activities 19 January 2010 Information session on the ‘Professional programmes in management accounting’ jointly offered by CIMA and CUHK SCS.
19 June 2010 The IVE - accounting software applications competition for secondary school students prize presentation ceremony by Ms Irene Cheng, divisional council member. 12 July 2010 Staff attended the City University of Hong Kong’s prize presentation ceremony. 17 July 2010 The MEP final presentation day by Ms Amy Lam, divisional council member. 29 November 2010 Staff attended the 2010 Prize Presentation Ceremony of the Faculty of Business and Economics, the University of Hong Kong.
25 January 2010 Career talk for the University of Hong Kong students. 26 January 2010 CIMA roundtable discussion for Human Resources professionals on ‘Recruiting finance and accounting talent’. 27 January 2010 Career talk for Lingnan University students.
25 March 2010 Staff attended the scholarship presentation of Hong Kong Polytechnic University. 12 April 2010 The Lingnan University scholarship presentation ceremony by Mr Richard Kenworthy, Divisional Vice President.
CIMA Hong Kong Annual Review 2010
27 January 2010 Information session on the ‘Professional programmes in management accounting’ jointly offered by CIMA and CUHK SCS. 29 January 2010 Career talk at Caritas in Tsuen Wan and Fanling.
Promoting and developing the science of management accounting continued
1 February 2010 Career talk for the Hong Kong Polytechnic University students. 2 February 2010 Career talk for the Open University of Hong Kong students. 3 February 2010 Information session on the Certificate in Islamic Finance programme jointly offered by CIMA and HKU SPACE. 6 February 2010 Seminar on ‘Career beyond accounting’ at the Hong Kong Convention and Exhibition Centre. 8 February 2010 Career talk for the Hong Kong University of Science and Technology students. 9 February 2010 Career talk for the City University of Hong Kong students. 24 February 2010 Information session on the Certificate in Islamic Finance programme jointly offered by CIMA and HKU SPACE.
17 March 2010 Information session on the ‘Professional programmes in management accounting’ jointly offered by CIMA and CUHK SCS. 18 March 2010 Staff participated in the ‘networking day with the business professionals’ at Lingnan University. 25 March 2010 Staff attended the ‘Perfect matchgraduate recruitment and employer branding’ at the City University of Hong Kong. 1 April 2010 Career seminar for HKU SPACE Community College students. 15 April 2010 Career talk for Hong Kong College of Technology students. 22 April 2010 CIMA – CUHK SCS information session on management accounting programmes.
26 May 2010 CIMA-CUHK SCS information session on management accounting programmes. 12 June 2010 CIMA booth at HKUSPACE open day. 18 June 2010 CIMA booth and seminar at the HKTDC entrepreneur day at the Hong Kong Convention and Exhibition Centre. 19 June 2010 Global Business Challenge (GBC) Hong Kong regional final. The Global Business Challenge (GBC) is a competition for all full time undergraduates of Hong Kong university degree programs. It is designed to provide an opportunity for students to analyse and evaluate a special business situation and apply management accounting concepts. It also helps CIMA in promoting the science of management accounting to next generation of business leaders. In Hong Kong the competition started in February 2010, it attracted more than 140 teams from all universities.
6 May 2010 Career seminar for CUHK SCS students.
2 March 2010 Career talk for the Hong Kong Polytechnic University students.
7 – 10 May 2010 Global Business Challenge press conference at The Chinese University of Hong Kong.
11 March 2010 CIMA participated career talk and exhibition at the University of Hong Kong.
12 May 2010 Career talk for Caritas students.
CIMA Hong Kong Annual Review 2010
An overview
09
10
Promoting and developing the science of management accounting continued
6 July 2010 Career talk for Manchester Business School students. 6 July 2010 CIMA participated in the A-performers Greater China talent management summit 2010.
5 August 2010 CIMA Global Business Challenge Global Final. The Hong Kong winning team Starlight from the University of Hong Kong entered the Global Final at the Taylor’s University in Kuala Lumpur, Malaysia and competed with 13 other country finalists from UK, Ireland, Sri Lanka, India, mainland China, Malaysia, Pakistan, Singapore, South Africa,UAE, Philippines, Bangladesh and Australia. Starlight eventually won the global final and became world champion for the competition, it was also the second time Hong Kong representatives seized the grand trophy.
CIMA Hong Kong Annual Review 2010
26 October 2010 Information session at City University of Hong Kong conducted by Mr Kingston Ho, Divisional Council member. 3 November 2010 CMGA information seminar at HKU SPACE.
16 December 2010 CMGA information seminar at HKU SPACE.
17 July 2010 Career talk for City University of Hong Kong students.
30 July 2010 CIMA-HKU SPACE information seminar on Certificate of Islamic Finance joint programmes.
5 October 2010 Information seminar on professional programmes in management accounting jointly organised by CIMA-CUHK SCS.
27 November 2010 CMGA information seminar at HKU SPACE.
7 July 2010 CMGA information seminar at HKU SPACE.
29 July 2010 Career seminar for Bradford University students.
28 September 2010 CIMA booth at A-Performers MBA and Postgraduate Fair at the Worldwide Executive Centre.
28 August 2010 Information seminar on professional programmes in management accounting jointly organised by CIMA-CUHK SCS. 6 September 2010 CIMA booth at Hong Kong Careers Fair of Oxford, Cambridge, LSE, Imperial College at British Council.
Other divisional engagements 21 January 2010 Dr Aidan Goddard, divisional council member, CIMA Hong Kong attended the budget consultation group meeting organised by the Financial Services and the Treasury Bureau. 21 January 2010 Mr Kenneth Chan, CIMA council member attended the HKICS annual dinner. 21 January 2010 Staff attended the thematic workshops in Asian financial forum 2010 at the Hong Kong Convention and Exhibition Centre. 26 January 2010 Mr Leo Cheung, Divisional President, Mr Richard Kenworthy, Divisional Vice President, and Mr Kenneth Chan, CIMA council member and staff attended the Anthony Chan Co. annual dinner.
1 February 2010 Staff attended HKIHRM/SCMP People Management Awards 2009 Presentation Ceremony luncheon. 4 March 2010 Mr Leo Cheung, Divisional President attended the ACCA Hong Kong Spring Dinner. 5 March 2010 Staff attended the HKU SPACE Community College 10th anniversary dinner. 11 March 2010 Mr Leo Cheung, Divisional President, attended the HKICPA spring dinner. 16 March 2010 Staff attended the annual symposium on risk management organised by Kornerstone.
28 January 2010 Dr Aidan Goddard FCMA, Mr Steve Au Yeung FCMA, Ms Irene Cheng ACMA, Dr Artie Ng FCMA and Mr KY Wong FCMA participated in the budget consultation group meeting.
18 March 2010 Mr Leo Cheung, Divisional President and Mr Kenneth Chan, CIMA Council member attended the Society of Chinese Accountants & Auditors Spring Dinner 2010.
1 February 2010 Mr Paul Chan, Divisional Deputy President attended the conference on 'Best practices in internal audit' organised by Pacific Conference and supported by CIMA.
24 March 2010 Mr Richard Kenworthy, Divisional Vice President, attended the scholarship presentation ceremony and donors’ tea reception of the Hong Kong Baptist University.
26 March 2010 Mr Leo Cheung, Divisional President, attended the AIA annual dinner. 26 March 2010 Dr WS Li, Divisional Council Member, presented at the CIMA - IBM joint sharing session on ‘A scorecard management approach in manufacturing’. 30 March 2010 Dr Aidan Goddard, divisional council member, attended the briefing on the white book of Guangzhou international business development 2010. 15 April 2010 Staff attended the official launch of HKIHRM HR professional standards gala dinner. 22 April 2010 Mr Richard Kenworthy, Divisional Vice President, attended the Hong Kong Polytechnic University's donors' reception. 26 April 2010 Mr Leo Cheung, Divisional President, attended the ACCA 60th anniversary cocktail reception. 30 April 2010 Dr Artie Ng, divisional council member, attended the seminar on 'Innovation and technology policy for Hong Kong’ organised by the Economic Analysis Division, Economic Analysis and Business Facilitation Unit, Financial Secretary’s Office, HKSAR.
CIMA Hong Kong Annual Review 2010
An overview
11
12
Other divisional engagements continued
1 May 2010 Staff attended the 45th anniversary celebration opening ceremony of the School of Continuing and Professional Studies, Chinese University of Hong Kong. 10 May 2010 Staff attended the sharing session from Mr. Thomas Mehrmann, CEO of Ocean Park Corporation organised by Bradford University. 13 May 2010 Ms Amy Lam, divisional council member, attended the seminar on ‘Transfer pricing with the State Administration of Taxation’ organised by the Inland Revenue Department, HKSAR. 14 May 2010 Staff attended the IBM cognos finance forum 2010. 26 May 2010 Staff attended the Manchester Business School seminar on ‘How to turn your social network into business capital and assets’ by Professor Gilbert Wong . 31 May 2010 Staff attended the Hong Kong General Chamber of Commerce cocktail reception and AGM.
CIMA Hong Kong Annual Review 2010
31 May 2010 Mr Leo Cheung, Divisional President and Mr Damian Yip, Divisional Director, attended the professional institutions in Hong Kong cocktail reception organised by UK Trade & Investment. 3 June 2010 Staff attended the promotional symposium & luncheon of the 14th CIFIT and World Investment Forum 2010. 3 June 2010 Staff attended the CIMA-CUHK SCS Professional Diploma Programme in Management Accounting graduation dinner. 11 June 2010 Staff attended KPMG executive breakfast briefing on IFRS update: impairment and amortised cost? 11-16 June 2010 Mr Leo Cheung, Divisional President, attended the Shanghai world expo study trip organised by Accounting Resource Centre, CIMA, ACCA, AIA, AWAHK, CGA, CMA Canada, CPA Australia, IAE, CA, SCAA, TIHK. 22 June 2010 Mr Leo Cheung, Divisional President attended the luncheon organised by the Accounting Resource Centre.
9 July 2010 Staff attended the open day of Caritas. 31 July 2010 Mr Leo Cheung, Divisional Immediate Past President, attended the innovation entrepreneur of the year 2010 judging day organised by the City Junior Chamber. 19 August 2010 Mr Leo Cheung, Divisional Immediate Past President attended the innovation entrepreneur of the year 2010 award presentation ceremony organized by the City Junior Chamber. 20 August 2010 Staff attended the 10th anniversary dinner of IT Accountants Association (ITAA). 15 September 2010 Mr Leo Cheung, Divisional Immediate Past President, Ms Jackie Ko, Divisional Council member and Mr Damian Yip, Divisional Director attended the inauguration ceremony of The Reanda International Network. 16 September 2010 Mr Paul Chan, Divisional President and Mr Damian Yip, Divisional Director of CIMA Hong Kong attended the CICPA inauguration ceremony and luncheon.
Other divisional engagements continued
16 September 2010 Mr Paul Chan, Divisional President attended The Institute of Financial Accountants’ IFASE inauguration ceremony and dinner. 28 September 2010 Mr Richard Kenworthy, Divisional Deputy President attended the Annual Dinner of CMA Canada. 15 October 2010 Staff attended the cocktail reception of The Manchester Business School Alumni Association (China)’s AGM. 29 October 2010 Mr Richard Kenworthy, Divisional Deputy President attended the CPA Congress 2010 in Hong Kong – ‘Navigate the New’ organized by CPA Australia. 2 November 2010 Dr Li Wing Sun, Divisional Vice President, attended the CGA-Annual Dinner. 6 November 2010 Mr Paul Chan, Divisional President, attended the Anniversary Banquet 2010 of the Open University of Hong Kong. 8 November 2010 Mr Richard Kenworthy, Divisional Deputy President, attended the opening ceremony of the 'River of Wisdom- Animated Version of the Riverside Scene at Qingming Festival' organised by the Leisure and Cultural Services Department, HKSAR.
10 November 2010 Staff attended the Hong Kong General Chamber of Commerce’s luncheon. 10 November 2010 Staff attended the HKU SPACE Alumni Social Enterprises e-Society (SEES) launching ceremony. 11 November 2010 Staff attended the Congregation of City University of Hong Kong.
13 December 2010 Mr Paul Chan, Divisional President attended the 20th Anniversary Seminar cum Annual Luncheon of HK College of Technology’s Information Service Centre of Professional Studies. 13 December 2010 Mr Paul Chan, Divisional President attended the HKIHRM’s Annual Luncheon 2010.
19 November 2010 Staff attended the China Enterprises Economic Research Study Centre’s luncheon. 29 November 2010 Staff attended the 2010 Prize Presentation Ceremony of the Faculty of Business and Economics, The University of Hong Kong. 1 December 2010 Staff attended the CFO Innovation Asia Forum. 8 December 2010 Staff attended the 45th Anniversary Banquet of CUSCS. 10 December 2010 Mr Richard Kenworthy, Divisional Deputy President, attended the HKIRD Sports Association’s Annual Dinner.
CIMA Hong Kong Annual Review 2010
An overview
13
2010 - An overview
14
Media coverage 12 January 2010 - CFO Innovation Asia Interview with Charles Tilley, CIMA Chief Executive on the management accounting and CIMA professional business qualification. 19 January 2010 - Jiu Jik and Jiu Jik online Interview with Damian Yip, Divisional Director of CIMA Hong Kong, regarding CIMA Global Business Challenge 2011. 19 February 2010 - Recruit Interview with Damian Yip, Divisional Director of CIMA Hong Kong on changing mindset of accounts and to strengthen management accounting skills. 15 May 2010 - A Plus Interview with Aubrey Joachim, CIMA President on urging management accountants to lead governance change and help companies focus on bigger picture rather than concentrating on technical details in order to provider real information to their bosses and influence strategy. 30 June 2010 - Jiu Jik 15 July 2011 - Sing Tao Daily 15 July 2011 - Oriental Daily Article reporting the Global Business Challenge Hong Kong final where students from the University of Hong Kong has won the competition, and is competing with other winners in Malaysia August 2011. 8 July 2010 - Metrodaily Interview with CIMA and the University of Hong Kong School of Professional and Continuing Education (HKU SPACE) on the offering of the first Islamic Finance certificate and advanced certificate courses in Greater China.
CIMA Hong Kong Annual Review 2010
10 July 2010 - Talent Management Introduction of CIMA, our professional qualification and course information. 12 August 2010 - Metrodaily An article interview on CIMA Masters Gateway Exam with Damian Yip, Divisional Director of CIMA Hong Kong and Albert Hung, Associate Head of College of Business and Finance, HKU SPACE. 13 August 2010 - Tai Kung Pao 13 August 2010 - Ming Pao 13 August 2010 - Metrodaily 13 August 2010 - Headline 13 August 2010 - Sing Tao Daily 13 August 2010 - Sing Pao Press conference held the day before regarding students from HKU winning the CIMA 2010 Global Business Challenge Grand final. 6 September 2010 - HK Economic Times Interview with Damian Yip, Divisional Director of CIMA Hong Kong on how MBA holders can help formulating strategies and quantify performance via pursuing the CIMA professional qualification. 17 September 2010 - Mingpao Jump Article on the co-branded professional diploma programmes jointly organized by CIMA and the School of Continuing and Professional Studies, The Chinese University of Hong Kong (CUHK SCS). 28 September 2010 - AM730 An interview on professional diploma programmes with Damian Yip, Divisional Director of CIMA Hong Kong and Dr. Brandon Ng, Associate Director of CUHK SCS.
19 October 2010 - The Standard An article interview with Damian Yip (CIMA) and Albert Hung (HKU SPACE) on 'Getting to the heart of business decision making'.
Divisional council, committee members and representatives Meetings attended by members of the divisional council (January 2010 to December 2010) Name Chan Kai Chi Kenneth Chan Kin Lok Paul Cheung Wai Yi Rachel Cheung Wan Yin Leo Chui Francis Goddard Aidan Ho King Lam Kingston Kenworthy Richard Ko Yung Lai Jackie Lam Yuen May Amy Li Wing Sun
Divisional Executive 6/7 5/5 3/7 3/5 3/3 6/7 5/5 1/3 5/7 7/7 4/5 6/7 3/5 2/3 6/7 2/2 5/7 3/3
Name Ng Wai Cheong Artie To Man Chau Gordon Tsui Hung Sang Hudson Yeung Chun Pong Paul Luk Wai Leong Walton Honorary Officers Divisional President Divisional Deputy President Divisional Vice President Divisional Immediate Past President
Divisional 6/7 1/7 5/7 5/7 5/7
Executive
Paul Chan Richard Kenworthy Li Wing Sun Leo Cheung
Members and students services committee Chairman Vice Chairman
Cameron Hon Jackie Ko Alan Lam Leong Khai Kong Samuel Ng Andy Tsang Ng Wai Cheong Artie Wong Suk Fun
Amy Lam Artie Ng Nicholas Allard Jasper Chung Rachel Cheung Francis Chiu Rebecca Chu Aidan Goddard
Past divisional presidents R Smith Joseph M Lai K K Yeung William Parker R Smith Joseph M Lai P D Morgan H K Poon W G N Manning Kenneth K C Chan Patrick K C Yeung P M Kam Julian C W Leung W G N Manning Stanford Miller Michael Y L Chan
1973-1974 1974-1975 1975-1976 1976-1978 1978-1979 1979-1980 1980-1981 1981-1982 1982-1983 1983-1984 1984-1985 1985-1987 1987-1988 1988-1989 1989-1992 1992-1993
Ellena Y K Au Jimmy K W Pun Louis N H Lee Simon T W Leung Peter W M Wong Anthony N T Chan Roger M Y Ho Alan C M Wong Teddy T M Iu Peter C W Choy Paul Yeung Albert Y K Law Peter C W Choy Michael Y L Chan Leo WY Cheung
1993-1994 1994-1995 1995-1996 1996-1997 1997-1998 1998-1999 1999-1999 (Dec) 2000-2001 2001-2002 2002-2004 2004-2005 2005-2006 (Apr) 2006-2007 2007-2009 2009-2010
Staff in Hong Kong (as of May 2010) Divisional Director Senior Executive, Business Operations
Damian Yip Cherry Chu
Senior Executive, Member & Student Services Yannie Lau Marketing & Development Manager Scott Lee CIMA Hong Kong Annual Review 2010
Summary accounts
15
16 Independent auditor's report to the members of the Chartered Institute of Management Accountants (Hong Kong division) We have audited the financial statements of the Division set out on pages 17 to 28, which comprise the balance sheet as at December 31, 2010, and the income and expenditure account, statement of changes in head office funds and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory notes. Divisional council's responsibility for the financial statements The Institute's constitution and by-laws require the Divisional Council to prepare financial statements that give a true and fair view in accordance with Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants, and for such internal control as the Divisional Council determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' responsibility Our responsibility is to express an opinion on these financial statements based on our audit and to report our opinion solely to you, as a body, in accordance with the Institute's constitution and by-laws, and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report. We conducted our audit in accordance with Hong Kong Standards on Auditing issued by the Hong Kong Institute of Certified Public Accountants. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Division's preparation of financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Division's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Divisional Council, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements give a true and fair view of the state of the Division's affairs as at December 31, 2010, and of its surplus and cash flows for the year then ended in accordance with Hong Kong Financial Reporting Standards.
ANDREW MA DFK (CPA) LIMITED Certified Public Accountants YAU WAI HING, STEPHEN Practising Certificate No. P03392 Hong Kong, 28 February 2011
CIMA Hong Kong Annual Review 2010
The Chartered Institute of Management Accounts (Hong Kong division) Balance sheet As at 31 December 2010 (Expressed in Hong Kong dollars)
2010 2009 Note HK$ HK$ Non-current assets Property, plant and equipment 3 -- 48,586 Current assets Inventories 4 40,327 23,513 Accounts receivable 5 25,743 56,741 Amount due from Head Office 6 72,338 -Deposits and prepayments 274,149 305,149 Cash and bank balances 458,850 270,546 871,407 655,949 Current liabilities Accrued expenses 48,381 42,267 Net current assets 823,026 613,682 823,026 662,268 Financed by : Head Office funds 823,026 662,268 Approved by the Divisional Council
Treasurer
Divisional President
Divisional Director
See accompanying notes
CIMA Hong Kong Annual Review 2010
Summary accounts
17
18 The Chartered Institute of Management Accounts (Hong Kong division) Income and expenditure account Year ended 31 December 2010 (Expressed in Hong Kong dollars)
2010 2009 HK$ HK$ Income Subvention from Head Office 2,025,937 952,004 Workshop and seminar income, net of seminar wxpenses 9,275 78,843 Bank interest income -- 52 Sundry income 79,019 81,160 2,114,231 1,112,059 Expenses Advertising and promotions 411,392 220,998 Auditors' remuneration 40,000 36,000 Bank charges 930 3,513 Building management fees 82,878 82,878 Depreciation 48,586 48,586 Donations -- 15,000 Insurance 20,400 22,591 Members and corporate affairs 252,295 212,349 Miscellaneous 88,059 119,977 Office supplies -- 31,995 Photocopying 35,916 14,609 Postage and courier 21,235 28,081 Printing and stationery 10,221 9,390 Professional fees 53,440 7,260 Property, plant and equipment written off -- 6,470 Rent, rates and air-conditioning 770,961 775,600 Salaries and allowances 29,350 24,200 Staff training 21,611 24,388 Telecommunications 22,875 25,554 Travelling - local 23,770 28,014 Travelling - overseas 18,554 40,886 Water, electricity and gas -- 16,101 1,952,473 1,794,440 Surplus/(Deficit) for the year 161,758 (682,381) Total comprehensive income transferred to Head Office Funds 161,758 (682,381) See accompanying notes
CIMA Hong Kong Annual Review 2010
The Chartered Institute of Management Accounts (Hong Kong division) Statement of changes in head office funds Year ended 31 December 2010 (Expressed in Hong Kong dollars)
General General Fund Reserve HK$ HK$ Balance at December 31 2008
The Past President Award Fund HK$
Total HK$
1,338,149
5,000
3,000
1,346,149
--
--
(1,500)
(1,500)
(682,381)
--
--
(682,381)
655,768
5,000
1,500
662,268
--
--
(1,000)
(1,000)
Total comprehensive income for the year
161,758
--
--
161,758
Balance at December 31 2010
817,526
5,000
500
823,026
Fund applied to award student for the year Total comprehensive income for the year Balance at December 31 2009 Fund applied to award student for the year
CIMA Hong Kong Annual Review 2010
Summary accounts
19
20 The Chartered Institute of Management Accounts (Hong Kong division) Statement of cash flows Year ended 31 December 2010 (Expressed in Hong Kong dollars)
2010 HK$
2009 HK$
189,304
(475,409)
Cash from/(used in) investing activities Bank interest income Purchase of property, plant and equipment
-- --
52 (6,470)
Net cash used in investing activities
--
(6,418)
Cash from/(used in) financing activities Decrease in the past president reward fund
(1,000)
(1,500)
Net cash used in financing activities
(1,000)
(1,500)
Net increase/(decrease) in cash and cash equivalents
188,304
(483,327)
Cash and cash equivalents at beginning of the year
270,546
753,873
Cash and cash equivalents at end of the year
458,850
270,546
Analysis of the balances of cash and cash equivalents Cash and bank balances
458,850
270,546
Surplus/(Deficit) for the year Adjustments for : Bank interest income Depreciation Property, plant and equipment written off
161,758
(682,381)
-- 48,586 --
(52) 48,586 6,470
Operating surplus/(deficit) before working capital changes
210,344
(627,377)
(Increase)/Decrease in inventories (Increase)/Decrease in accounts receivable (Increase)/Decrease in amount due from Head Office (Increase)/Decrease in deposits and prepayments Increase/(Decrease) in accounts payable Increase/(Decrease) in accrued expenses
30,998 (72,338) 31,000 -- 6,114
7,182 257,315 (53,162) (47,957) (11,795)
Net cash inflow/(outflow) from operating activities
189,304
(475,409)
Net cash inflow/(outflow) from operating activities (see note below)
NOTE TO THE STATEMENT OF CASH FLOWS Reconciliation of surplus/(deficit) to net cash inflow/(outflow) from operating activities :
CIMA Hong Kong Annual Review 2010
The Chartered Institute of Management Accounts (Hong Kong division) Notes to the financial statement Year ended 31 December 2010 (Amounts expressed in Hong Kong dollars)
1. General information The Chartered Institute of Management Accountants was incorporated in the United Kingdom under a Royal Charter and operates the Hong Kong Division at the registered address at Suites 1414-1415, 14/F., Jardine House, Central, Hong Kong.
The principal activities of the Hong Kong Division include, inter alia, the promotion of the science of management accountancy and providing member services and student supports by organising networking events and seminars.
2. Significant accounting policies The financial statements have been prepared in accordance with the Hong Kong Financial Reporting Standards (HKFRSs) covering the Hong Kong Accounting Standards (HKASs) issued by the Hong Kong Institute of Certified Public Accountants. Significant accounting policies adopted by the Division in preparing the financial statements are set out below. a) Basis of preparation of the financial statements The financial statements are prepared under the historical cost convention, as modified where appropriate by revaluation of certain financial assets and financial liabilities. The accounting policies used in the financial statements are consistent with those followed in the preparation of the financial statements for the year ended December 31, 2009, except that in the current year, the Division has applied for the first time the following amendments that are effective for the current year and are relevant to the operations of the Division: HKFRSs (Amendments Improvements to HKFRSs 2009 The improvements to HKFRSs 2009 comprise a number of minor changes but which have not resulted in any change of accounting policies in the context of the Division. The Division has not early applied the following standards and amendments which have been issued but are not yet effective:
HKFRSs (Amendments) HKFRS 9 HKAS 24 (Revised)
Improvements to HKFRSs 2010 Financial instruments (relating to the classification and measurement of financial assets and financial liabilities) Related party disclosures
The Divisional Council anticipates that these standards and amendments not yet applied will have no material impact on the Division's results of operations and financial position. b) Foreign currency transactions The Division maintains its books of account in its functional currency (i.e. the currency of the primary economic environment in which the entity operates). Foreign currency transactions are translated during the year at the rates of exchange ruling at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated at the rates of exchange ruling at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Exchange gains or losses arising on the retranslation of monetary items are included in the income and expenditure account. Exchange differences arising on the retranslation of non-monetary items carried at fair value are included in the income and expenditure account except for differences arising on the retranslation of non-monetary items in respect of which gains or losses are recognised in other comprehensive income, in which cases, the exchange differences are also recognised directly as other comprehensive income under a reserve account in Head Office Funds separate from General Funds. c) Financial instruments A financial instrument is defined as any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. CIMA Hong Kong Annual Review 2010
Summary accounts
21
22 The Chartered Institute of Management Accounts (Hong Kong division) Notes to the financial statement (continued) Year ended 31 December 2010 (Amounts expressed in Hong Kong dollars) Financial assets/liabilities are recognised in the balance sheet when the Division becomes a party to the contractual provisions of the instrument. A) Measurement of financial assets A financial asset is measured at its fair value upon initial recognition. The measurement of financial assets subsequent to initial recognition relating to loans and receivables, which are the financial assets relevant to the Division, are as follows: Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market, and that are created by the Division by providing goods, service or money directly to a receivable. These include trade receivables, time deposits, loans and other receivables. Loans and receivables are recognised in the balance sheet under current assets, except for maturities greater than 12 months after the reporting date which are classified as non-current assets. All purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace, are recognised or derecognised on a trade date basis. As at the reporting date, loans and receivables are carried at amortized cost using the effective interest method, less any identified impairment losses. An impairment loss is recognised in the income and expenditure account when there is objective evidence that the asset is impaired, and is measured as the difference between the asset's carrying amount and the present value of the estimated future cash flows discounted at the original effective interest rate. Impairment losses are reversed in subsequent periods when an increase in the asset's recoverable amount can be related objectively to an event occurring after the impairment was recognised, subject to a restriction that the carrying amount of the asset at the date the impairment is reversed does not exceed what the amortized cost would have been had the impairment not been recognised.
CIMA Hong Kong Annual Review 2010
B) Measurement of financial liabilities A financial liability is measured at its fair value upon initial recognition. Financial liabilities relating to borrowings and payables, which are the financial liabilities relevant to the Division, are measured at amortised cost using the effective interest rate method as at the reporting date subsequent to initial recognition. Transaction costs that are directly attributable to the acquisition or issue of the above types of financial assets and financial liabilities are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. d) Property, plant and equipment and depreciation Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses, if necessary. All capital expenditure up to the unit value of HK$7,000 are written off in the year of acquisition. Depreciation is provided on a straight line basis on the cost of property, plant and equipment and calculated at the following rates per annum based on their respective estimated useful lives: Leasehold improvements Furniture and fixtures Hi-tech and other office equipment (including computer system)
Over the terms of the lease 100%
33-1/3%
e) Inventories Inventories are valued at the lower of cost and net realizable value. Cost is calculated using the firstin first-out basis and comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Net realizable value is the estimated selling price at which inventories can be sold in the normal course of business after allowing for the estimated costs of realization.
The Chartered Institute of Management Accounts (Hong Kong division) Notes to the financial statement (continued) Year ended 31 December 2010 (Amounts expressed in Hong Kong dollars)
f) Impairment of assets Assets that have an indefinite useful life are not subject to amortization, but are at least tested annually for impairment and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Assets that are subject to amortization are also reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable or that an impairment loss previously recognised no longer exists or may have decreased. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognized as an expense immediately, unless the relevant asset is carried at revalue amount, in which case the impairment loss is firstly charged against other comprehensive income to the extent of the amount held in the revaluation reserve in the Head Office Funds with any excess recognized as an expense. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, which is restricted to the carrying amount that would have been determined had no impairment loss been previously recognized for the asset. A reversal of an impairment loss is recognized as income immediately, unless the relevant asset is carried at a revalue amount, in which case the reversal of the impairment loss is treated as a revaluation increase under other comprehensive income. g) Operating leases Lease payments under operating leases are accounted for in the income and expenditure account on a straight line basis over the period of the respective leases. h) Revenue recognition Revenue is recognized when it is probable that the economic benefits associated with the transaction will flow to the Division and the amount of the revenue can be measured reliably.
i) Subvention from head office is recognised when funds are received for expenses approved by the Division's Head Office. ii) Workshop and seminar income is recognized upon completion of training or services rendered. iii )Interest income is recognized on an accrual basis that takes into account the effective yield on the assets. i) Cash equivalents Cash equivalents are short-term, highly liquid investments that are readily convertible into known amounts of cash and are subject to an insignificant risk of changes in value. For the purpose of the statement of cash flows, cash equivalents also include advances from banks repayable within three months from the date of the advance. j) Provisions Provisions are recognized when the Division has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount can be made. Where the Division expects a provision to be reimbursed, the reimbursement is recognized as a separate asset when the reimbursement is virtually certain.
Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote.
k) Related parties Two parties are considered to be related if one party has the ability directly or indirectly to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or common significant influence, or if they are key management personnel of the Division or its head office, or if they are close members of the related parties. CIMA Hong Kong Annual Review 2010
Summary accounts
23
24 The Chartered Institute of Management Accounts (Hong Kong division) Notes to the financial statement (continued) Year ended 31 December 2010 (Amounts expressed in Hong Kong dollars) 3. Property, plant and equipment
Leasehold improvements HK$
Furniture and fixtures HK$ HK$
Total HK$
2010 At cost At beginning and end of the year
268,199
38,094
84,313
390,606
Accumulated depreciation At beginning of the year Charges for the year
219,613 48,586
38,094 --
84,313 --
342,020 48,586
At end of the year
268,199
38,094
84,313
390,606
Net book value At end of the year
--
--
--
--
2009 At cost At beginning of the year Additions Written off
268,199 -- --
38,094 -- --
84,313 6,470 (6,470)
390,606 6,470 (6,470)
At end of the year
268,199
38,094
84,313
390,606
Accumulated depreciation At beginning of the year Charges for the year
171,027 48,586
38,094 --
84,313 --
293,434 48,586
At end of the year
219,613
38,094
84,313
342,020
Net book value At end of the year
48,586
--
--
48,586
At cost Study books and materials
2010 HK$
2009 HK$
40,327
23,513
4. Inventories
CIMA Hong Kong Annual Review 2010
The Chartered Institute of Management Accounts (Hong Kong division) Notes to the financial statement (continued) Year ended 31 December 2010 (Amounts expressed in Hong Kong dollars) 5. Account receivables The following is an aged analysis of accounts receivable net of impairment losses at the reporting date : 2010 HK$
Not past due
25,743
2009 HK$ 56,741
No interest is charged on the accounts receivable. The Divisional Council believes that no impairment provision is necessary in respect of these balances which, according to past experience, are considered fully recoverable. The Division does not hold any collateral over these balances. 6. Amount due from Head Office This account is unsecured, interest free and has no fixed terms of repayment. 7. Taxation Hong Kong Profits Tax has not been provided for in these financial statements as the Division has no assessable profits during the year. 8. Operating leases Rental payments in respect of leasehold land and buildings under operating leases for the year :
a) Rental payments in respect of premises under operating leases for the year
2010 HK$
2009 HK$
741,540
741,540
247,180 --
741,540 247,180
247,180
988,720
b) At the reporting date, the Division's future minimum lease payments under non-cancellable operating leases are payable as follows : - within one year - in the second to fifth year inclusive
9. Related party transactions Certain part of the Division's operation was represented by transactions with related parties. These financial statements reflect the effects of those transactions on bases determined between the Division and its related parties. During the year, the Division had the following material transactions with its related parties :
2010 HK$
2009 HK$
2,025,937 8,099
952,004 18,068
Subvention from Head Office Sales of books to Shanghai Division of the Institute at cost
At end of the year, the Company also had certain account balances with its related companies or parties as stated in the preceding Note 6. CIMA Hong Kong Annual Review 2010
Summary accounts
25
26 The Chartered Institute of Management Accounts (Hong Kong division) Notes to the financial statement (continued) Year ended 31 December 2010 (Amounts expressed in Hong Kong dollars) 10. Critical accounting judgments and key sources of estimation uncertainty In the process of applying Division's accounting policies, which are described in note 2 above, management has made various estimates and judgments (other than those involving estimates) based on past experience, expectations of the future and other information. The key source of estimation uncertainty and the critical accounting judgments that can significantly affect the amounts recognised in the financial statements are set out below. Depreciation of property, plant and equipment The Division reviews the useful lives and residual value of the property, plant and equipment periodically based on the conditions of the assets and other regulatory requirements. If the estimates of useful lives for the assets are revised or there is a change in the useful lives, the amount of depreciation expenses recorded in future periods will change. Inventories Management estimates the net realisable value for inventories based primarily on the latest invoice prices and current market conditions. The Division carries out an inventory review on a product-by-product basis at each reporting date and makes provision for impairment on obsolete and slow-moving items or write-off or write-down inventories to net realisable value. Estimate of fair value of financial instruments The book values of financial assets and financial liabilities relevant to the Division are assumed to approximate their fair values. 11. Fund management The Division's objectives when managing funds from head office are : a) To safeguard the Division's ability to continue as a going concern; b) To support the Division's membership retention and growth; and c) To provide funds for the purpose of strengthening the Division's risk management capability.
The Division regularly reviews and manages its fund requirements to ensure the Division's objectives are met taking into account of its current and future strategies. The Division is not subject to either internally or externally imposed capital requirements.
12. Financial risk management The Division has classified its financial assets in the following category :
2010 HK$
2009 HK$
25,743 72,338 274,149 458,850
56,741 -305,149 270,546
831,080
632,436
Loans and receivables
Accounts receivable Amount due from Head Office Deposits and prepayments Cash and bank balances
CIMA Hong Kong Annual Review 2010
The Chartered Institute of Management Accounts (Hong Kong division) Notes to the financial statement (continued) Year ended 31 December 2010 (Amounts expressed in Hong Kong dollars)
The Division has classified its financial liabilities in the following category :
Financial liabilities at amortised cost
Accrued expenses
2010 HK$
2009 HK$
48,381
42,267
All financial instruments are carried at amounts not materially different from their fair values at the reporting date. The Division is exposed to credit risk, liquidity risk and market risk arising in the normal course of its activities in respect of its financial instruments. The Division's risk management objectives, policies and processes mainly focus on minimizing the potential adverse effects of these risks on its financial performance and position by closely monitoring the individual exposure. a) Credit risk The Division's credit risk is primarily attributable to accounts receivable and amount due from Head Office. The maximum exposure to credit risk in the event of the counterparties' failure to perform their obligations as at the reporting date in relation to each class of recognised financial assets is the carrying amount of those assets as stated in the balance sheet. In order to minimize the credit risk, the Divisional Council has reviewed the recoverable amount of each individual receivable at each reporting date to ensure that adequate impairment losses are made for irrecoverable amounts. Summary quantitative data 2010 2009 HK$ HK$ Accounts receivable Amount due from Head Office
25,743 72,338
56,741 --
98,081
56,741
The Division has no significant concentration of credit risk. b) Liquidity risk Liquidity risk is the risk that funds will not be made available to meet liabilities as they fall due. The Division's policy is to regularly monitor its liquidity requirements to ensure that sufficient reserves of cash, credit facilities and/or financial support are maintained. The following table details the remaining contractual maturities at the reporting date of the Division's non-derivative financial liabilities and the earliest date the Division can be required to pay. Summary quantitative data 2010 2009 HK$ HK$ Within 1 year or on demand Accrued expenses 48,381 42,267
The Division has no significant concentration of liquidity risk. CIMA Hong Kong Annual Review 2010
Summary accounts
27
Summary accounts
28 The Chartered Institute of Management Accounts (Hong Kong division) Notes to the financial statement (continued) Year ended 31 December 2010 (Amounts expressed in Hong Kong dollars)
c) Market risk Market risk is the risk arising from movements in market variables such as interest rates. Interest rate risk
The Division's exposure to cash flow interest rate risk arises mainly from its deposits with bank and the exposure is considered not significant. Summary quantitative data
Floating rate financial assets Bank balances
2010 HK$
2009 HK$
404,761
255,107
13. Comparative figures Certain comparative figures have been reclassified to conform with the current year's presentation. 14. Approval of the financial statements The financial statements were approved and authorized for issue by the Divisional Council on 1 March 2011.
CIMA Hong Kong Annual Review 2010
Contact details
CIMA Australia Suite 1305 109 Pitt Street Sydney, NSW 2000 T. +61 (0)2 9376 9900 F. +61 (0)2 9376 9905 E. sydney@cimaglobal.com CIMA Botswana Physical: Plot 50374 Block 3 First Floor, Southern Wing Fairgrounds Financial Centre Gaborone Postal: PO Box 403475 Gaborone T. +267 395 2362 or 395 2366 F. +267 397 2362 or 395 2366 E. gaborone@cimaglobal.com CIMA China Shanghai Office Unit 1508A 15th floor of AZIA Center 1233 Lujiazui Ring Road Pudong, Shanghai, 200120 T. +86 (0)21 6160 1558 F. +86 (0)21 6160 1568 E. infochina@cimaglobal.com www.cncima.com Beijing Office 5th Floor, China Life Tower 16 Chaoyangmenwai Avenue Beijing 100020 Hotline. 400 820 4080 E. infochina@cimaglobal.com Shenzhen Office Room 55, 16/F, Citic City Plaza Shennan Road Central, Shenzhen, 518031 P.R.China T. +86 (0)755 3330 5150 F. +86 (0)755 3330 5127 E. infochina@cimaglobal.com Chongqing Office Room 1202, Metropolitan Tower No. 68 Zourong Road Yuzhong District Chongqing, 400010 T. +86(0)21 63713538 F. +86(0)21 63816175 E. infochina@cimaglobal.com
CIMA Hong Kong Suites 2005 20th Floor, Tower One Times Square, 1 Matheson Street Causeway Bay, Hong Kong T. +852 2511 2003 F. +852 2507 4701 E. hongkong@cimaglobal.com www.cimahongkong.com CIMA India Unit 1-A-1, 3rd Floor Vibgyor Towers C-62, G Block Bandra Kurla Complex Bandra (East), Mumbai – 400 051 T. +91 22 42370100 F. +91 22 42370109 E. india@cimaglobal.com CIMA Malaysia Lots 1.03b & 1.05 Level 1 KPMG Tower First Avenue, Bandar Utama 47800 Petaling Jaya Selangor Darul Ehsan T. +60 (0) 3 77 230 230 F. +60 (0) 3 77 230 231 E. kualalumpur@cimaglobal.com CIMA Middle East Office E01, 1st Floor, Block 3 PO Box 502221 Dubai Knowledge Village Al Sofouh Road Dubai, UAE T. +9714 4347370 F. +9714 4341998 E. middleeast@cimaglobal.com CIMA Pakistan No. 201 2nd Floor, Business Arcade Plot No. 27-A Block-6 P.E.C.H.S. Shahra-e-Faisal Karachi T. +92 21 3432 2387 F. +92 21 3432 2390 E. pakistan@cimaglobal.com CIMA Republic of Ireland Block E, 5th Floor Iveagh Court Harcourt Street Dublin 2 T. +353 (0) 1 6430400 F. +353 (0) 1 6430401 E. cima.ireland@cimaglobal.com
CIMA Singapore 51, Goldhill Plaza #08-02 Singapore 308900 T. +65 6535 6822 F. +65 6534 3992 E. singapore@cimaglobal.com CIMA South Africa 1st Floor, South West Wing 198 Oxford Road Illovo, Johannesburg PO Box 745 Northlands 2116 T. +27 (0)11 788 8723 F. +27 (0)11 788 8724 E. johannesburg@cimaglobal.com CIMA Sri Lanka 356 Elvitigala Mawatha Colombo 5 T. +94 (0)11 250 3880 F. +94 (0)11 250 3881 E. colombo@cimaglobal.com CIMA UK 26 Chapter Street London SW1P 4NP T. +44 (0)208 849 2251 F. +44 (0)207 663 5442 E. cima.contact@cimaglobal.com www.cimaglobal.com CIMA Zambia Physical: 6053 Sibweni Road Northmead, Lusaka Postal: PO Box 30640, Lusaka T. +260 1 290 219 F. +260 1 290 548 E. lusaka@cimaglobal.com CIMA Zimbabwe Physical: 6th Floor Michael House 62 Nelson Mandela Avenue Harare Postal: PO Box 3831, Harare T. +263 (0)4 708 600 or 250745 F. +263 (0)4 708 600 E. harare@cimaglobal.com
CIMA Hong Kong Annual Review 2010
Contact details
29
Chartered Institute of Management Accountants CIMA Hong Kong Suite 2005, Tower One, Times Square, 1 Matheson Street, Causeway Bay, Hong Kong T. +852 2511 2003 F. +852 2507 4701 E. hongkong@cimaglobal.com CIMA Hong Kong Annual Review 2010 www.cimahongkong.com
CIMA World Conference 2011 24 - 25 October 2011 | Cape Town SA