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3469 CIMA Quality-Download-OpenDay275x215Ad 23/11/07 3:20 pm Page 1 financial management Dec/Jan 2007/08 20 26 36 Mystical managers: Atomic numbers: the The “Wiki effect”: LOOKING FORWARD TO 2008 EXAMS why 2,000-year-old business implications how collaborative methods are making of the UK’s forthcoming web technology is a comeback in auction-based carbon turning commerce into modern businesses trading scheme a community effort Need study advice? www.cimaglobal.com December/January 2007/08 £4.50 Come to a BPP Open Day and see why BPP trains more CIMA Prize Winners than anyone else. financialmanagement If you are wondering what to do next, whether it be starting your studies, choosing which combination of papers to take, or Technical matters which course type would meet your needs, then come along to a BPP Open Day/Evening. Strategic global Download a brochure today management GET STUDY ADVICE FROM BPP’S EXPERT TUTORS. Forecasting Open Days are held regularly – in some BPP course brochures for first half 2008 courses are now available to centres every two months. Money-laundering download. www.bpp.com/cima/opendays Go to: www.bpp.com/cima/brochures Qualify early with BPP Based on BPP average pass rates, BPP students complete their studies approximately 12-18 months ahead of the average CIMA student. BPP are the number one choice for 90% of FTSE 100 companies. Well set FLEXIBLE COURSES AND CBAs Our Certificate courses are specifically designed to From buy-outs focus on the computer based assessments (CBAs) that you will face. ■ Certificate courses run throughout the year so you can progress quickly to bat caves with through the papers. Ian Flavell, FD of ■ CBAs run at all BPP centres on a weekly basis. EXCELLENT STUDY SUPPORT BPP’s team of over 200 qualified tutors are a key reason Castle Cement why our students achieve fantastic pass rates. EXCELLENT STUDY MATERIALS BPP’s quality study materials, supplied by BPP Learning Study notes Media, cover the syllabus and focus on the exam. Paper P1 Management PASS ASSURANCE We’re so confident that you’ll pass that, if you are unsuccessful, Accounting – Performance we’ll let you attend another course for that paper FREE of charge. Evaluation Paper P4 Organisational For more information call your nearest Course Centre or visit www.bpp.com/cima Management and Information Systems COURSE LOCATIONS: GLASGOW & EDINBURGH LUTON & MILTON KEYNES NOTTINGHAM +44 (0) 115 924 2244 Paper P8 Financial Analysis +44 (0) 141 332 7400 +44 (0) 1582 413332 BIRMINGHAM +44 (0) 121 212 4722 READING +44 (0) 118 959 6166 LEEDS & SHEFFIELD MAIDSTONE +44 (0) 1622 687100 SOUTHAMPTON & PORTSMOUTH BRISTOL & CARDIFF +44 (0) 113 244 8822 +44 (0) 117 930 1710 MANCHESTER, PRESTON +44 (0) 2380 225700 LIVERPOOL +44 (0) 151 236 9030 & STOKE-ON-TRENT CAMBRIDGE +44 (0) 1223 309292 EIRE DUBLIN 00 3531 662 3395 LONDON UK 0845 075 1100 +44 (0) 161 288 8000 ( ) EIRE LIMERICK 00 353 6 131 0884 ® CROYDON +44 0 20 8681 2244 INTERNATIONAL +44 (0) 20 8740 2211 NEWCASTLE +44 (0) 191 232 4888 POLAND 00 48 22 50 40 700 FM1207 Gordon Grant >inbusiness CIMA president THE IMPORTANCE OF BOTH LONG-TERM PLANNING AND RAPID FLEXIBILITY CANNOT BE OVERSTATED Over the past year CIMA has The institute is ending 2007 citizenship so that business can taken a leading role in supporting with two exciting developments, help to solve the challenges the transformation of the finance both of which are world firsts. posed by globalisation. function. World-class business At the start of December we CIMA Sri Lanka is helping leaders highlighted the pace of become the first professional companies to implement the change in business at the accountancy body to launch a UNGC’s ten principles into their institute’s recent annual global qualification in Islamic practices. A key task will be to At the start of conference in London. It’s clear finance. We have identified train participants in how to December we from them – and from our own considerable demand from comply with the compact’s experiences – that only those employers around the world for a annual reporting requirements become the first individuals and institutions that are qualification to develop the – particularly the yearly professional prepared and equipped to change knowledge and skills required to “communication on progress”. “ constantly will be successful in service this increasingly important In another first, the UNGC accountancy the long term. Those that fail to market. The Islamic finance and CIMA Sri Lanka will host adapt will be left behind. industry is thought to be worth their inaugural sustainability body to launch We’re hearing this harsh and between £150bn and £250bn awards in 2008. This event will a global increasingly loud message and is growing at an estimated recognise businesses for their constantly right across the world. rate of 15 to 20 per cent a year. achievements in core areas such qualification in It applies as much to the CIMA has worked alongside the as promoting human rights, Islamic finance institute as it does to you as an International Institute of Islamic improving labour relations, individual member and, in turn, Finance to design a self-study conserving the environment and your employer. programme to meet the vital fighting corruption. are designed for members But, as the conference also needs of its employer and The coming year promises to operating in businesses of all highlighted, adapting flexibly to student stakeholders. deliver even more exciting sizes across every sector. change is what CIMA and its On December 13 CIMA Sri products, services and The institute’s global members have been doing ever Lanka will officially declare its experiences to contribute to advertising campaign will also since the institute was founded in sponsorship of a worldwide business success worldwide. continue to target prospective 1919 – in response to the failure initiative called the United Nations Details of an important new students in key markets, while of other professional bodies at Global Compact (UNGC). The e-learning product to benefit all our business development team D the time to meet the forward- institute facilitates the UNGC’s CIMA students will be available in will keep building relationships R looking needs of business. The network in Sri Lanka. Through the first quarter of 2008, for with the world’s leading CUNA natural place for the chartered the power of collective action, example. The CIMA CPD Centre companies to ensure that CIMA ICK management accountant is, the compact – established at the of Excellence will continue to remains the qualification of H: N therefore, at the forefront of 1999 World Economic Forum by provide members with world- choice for business. AP R change. This means that the Kofi Annan, the former UN class resources and expertise in May I take this opportunity future for us poses abundant secretary-general – seeks to the form of conferences, reports to wish you peace and prosperity OTOG PH opportunities for success. promote responsible corporate and online support tools. These in 2008. CIMA is the Chartered Institute of Management Accountants, 26 Chapter Street, London SW1P 4NP. Tel: +44 (0)20 7663 5441 President Gordon Grant FCMA Deputy president Glynn Lowth FCMA Vice-president Aubrey Joachim FCMA Chief executive Charles Tilley FCA financial management 1 CIMA, 26 Chapter Street, London SW1P 4NP +44 (0)20 7663 5441 www.cimaglobal.com CONTENTS Editorial and production Caspian Publishing 198 King’s Road, London SW3 5XP 12 One2one T: +44 (0)20 7368 7170 F: +44 (0)20 7368 7201 By the very nature of E: [email protected] 12 Editor Ruth Prickett its business, Castle Chief sub-editor Neil Cole Creative director Nick Dixon Cement will never Art director Erroll Jones be the greenest of Art editor Clare Meredith Account manager Tina Franz firms. But, as its FD, Advertising Ian Flavell, explains, T: +44 (0)20 7368 7117 F: +44 (0)20 7368 7112 it is investing millions E: [email protected] Advertisement manager in minimising its Ellen Pagliarulo ecological impact. Subscriptions E: [email protected] T: +44 (0)20 7368 7200 £45 (UK), £54 (Europe), £72 (rest of world). Back issues: £5.50 including postage, subject to availability. All payments should be in sterling drawn on a UK bank. For the USA FM (ISSN 1471 9185) is published ten times a year for $60 by Caspian Publishing, 198 King’s Road, London SW3 5XP. Periodicals postage paid at Rahway, NJ Postmaster. Send address changes to: Financial Management, 20 c/o BTB Mailflight Ltd, 365 Blair Road, Avenel, NJ 07001. 20 The yin crowd Caspian Publishing 04 Letters 47 Study notes Why the application Chief executive Mike Bokaie Corporate governance; Islamic Your guide to entering, taking and Finance director Kate Andrews finance; effectiveness versus passing the CIMA qualification. of mystic disciplines Financial controller Desmond Heggie Editorial director Stuart Rock efficiency; Beyond Budgeting. 47 Student one2one: Simon such as feng shui Communications director Gardiner of BakBone Software. Matthew Rock and astrology to Commercial director Justin Khaksar 06 First in… 48 Exam tips: paper P4 All the latest news affecting Organisational Management modern business Reproduction Zebra accountants in business, and Information Systems. Printing Headley Brothers is becoming a including regulations updates. 53 Exam tips: paper P8 CIMA reserves the right to grant Financial Analysis. growth industry. permission to reproduce articles. 54 Exam tips: paper P1 Opinions expressed in FM are the 16 Opinion authors’ own and do not necessarily 16 Do terrible TV ads still work? Management Accounting – represent the policies of their 18 M&As: the board’s dilemma. Performance Evaluation. 26 Carbon dating employers or CIMA council.