Chartered Institute of Management Accountants

19 October 2006

John Coghlan, President of the Chartered Institute of Management Accountants (CIMA) will tell a city audience of business leaders and representatives of Government, that despite the fact that the six UK chartered accountancy bodies lead the world in the training and qualification of their 250,000 UK members, at no cost to the state, their members’ contribution to the overall economy of UK plc receives very little public or Government acclaim.

Speaking at the eighty-sixth annual CIMA President Dinner, held on 19 October at the Merchant Taylors’ Hall in the City of London, John Coghlan will say:

“CIMA is one of six chartered accounting bodies in the UK.  Together we have 250,000 members working here in the UK, in business, in the public sector and in practice. These members have been trained at no cost to the State. Their standards of competence and ethics are second to none in the world, in fact we probably lead the world. Their positive contribution to the overall economy of UK plc is immeasurable and yet, in general, they and their institutes receive very little public or Government acclaim for the contribution they make.”

As President of the only chartered accountancy body with a sole focus on business, John Coghlan will go on to stress CIMA’s firm support of independent regulation, and in particular the accountancy profession’s support for the Financial Reporting Council in promoting confidence in corporate reporting and governance. He will say:

“We believe that independent regulation means not just independence from the accountancy profession but also independence from Government. CIMA believes that excellence in financial reporting is not just about figures but also about narrative. Excellence in corporate governance is not just about structure and compliance but about corporate performance, that is the creation of long term value within companies."

However, he warned of the dangers of compliance issues distracting the board, and in particular, the CFO, from their main task of value creation:

“Confidence in business means having successful businesses in which to have confidence. Finance professionals in the UK must continue to be business partners and value creators and must not over-emphasise the scorekeeping role. We need to emphasise more the value creation role of accountants in business and their role in building and maintaining success in business. It is success that breeds confidence. “

He went on to describe the importance to UK plc of global companies choosing to remain headquartered in the UK. However he urged the profession to keep up with the changing trends and demands of global business. The emergence of a new breed of CFO in Asia Pacfic and other markets who come from a business or banking background, rather than accounting, is a reflection of the need to be able to handle a range of responsibilities outside financial reporting and this is a wake-up call to the profession to maintain its relevance.

He will say:

“Just as business has to respond to changing trends, the accountancy profession must also keep up with this change. The profession must think and act globally, be forward looking, be focused on value creation and the development of its members and students to ensure that they have the skills needed for the finance professional of tomorrow. “

He will conclude:

“CIMA is determied to stay at the forefront of change, for the benefit of business, the Institute, its members and the reputation of the accountancy profession overall.

ENDS

For further information, please contact:

Lottie Muir
Press & PR Manager, CIMA
+44 (0) 20 8849 2407
lottie.muir@cimaglobal.com

Notes to editors

1. CIMA (the Chartered Institute of Management Accountants) is the only international accountancy body with a sole focus on business.  It is a world leading professional institute that offers an internationally recognised qualification in management accountancy, focusing on accounting in business, in both the private and public sectors. It is the fastest growing UK based accountancy body, in terms of members, in both the UK and worldwide and is the voice of over 155,000 members and students in 158 countries.  CIMA is responsible for the education and training of management accountants who work in industry, commerce and not-for-profit and has more members in the public sector than any other UK based body.  CIMA prides itself on the commercial relevance of its syllabus, which is in tune with the activities of high performance organisations, and evolves continually to reflect the latest developments in global business.  It is committed to upholding the highest ethical and professional standards of members and students, and to maintaining public confidence in management accountancy. 
   
2. Guests at the 86th CIMA President Dinner included Chairmen, Chief Executives and Chief Finance Officers of the UK’s leading FTSE companies, diplomatic representatives of the countries in which CIMA operates, representatives from the UK Government, leaders of the UK’s chartered accounting bodies, accounting oversight and regulatory bodies as well as education providers and academics.
   

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