Consolidated financial statements 2020/CIMA Fina… · structures; improved member experience and service provision; and delivered a refreshed Code of Ethics. The Association of International

RE IMAG INE

The Chartered Institute of Management Accountants Consolidated financial statements for the year ended 31 December 2019

Consolidated financial statements II

Consolidated financial statements 1

2 President’s report

9 Financial performance review

12 The Audit and Finance Committee

13 Independent auditors’ report

15 Consolidated statement of comprehensive income

16 Consolidated statement of financial position

17 Consolidated statement of cash flows

18 Consolidated statement of changes in funds

19 Notes to the consolidated financial statements

48 CIMA’s Council and Committee members

Contents


President’s report

The Chartered Institute of Management Accountants® (CIMA®) celebrated its centenary year, beginning with an event for members on 8 March 2019, marking 100 years since CIMA was established. We celebrated the past and looked forward to the future of the profession, re-imagining what the future might look like. We followed this with global events to celebrate our profession, the work of our members and students and their contributions to businesses and employers.

While celebrating the work of our members we also continued to advance our profession for the benefit of current and future members and students. We continued the work to implement the outcomes following the review of CIMA Council; completed research into the future of finance and launched the new syllabus; established a new committee that is responsible for oversight of global member support structures; improved member experience and service provision; and delivered a refreshed Code of Ethics. The Association of International Certified Professional Accountants® (Association),

which combines the strength of CIMA and the American Institute of CPAs® (AICPA®), also continued to progress a number of key strategic initiatives for management accounting, which are set out in more detail in the Association’s integrated report, adopted by Council as a significant element of its own reporting on 2019.

The pursuit of our Royal Charter objects remains at the forefront of activities within CIMA and the Association. Protections are in place to assure that; as well as commitments made by the Association in respect of the same; and regular reports are made to CIMA Council by the Association. A formal annual feedback report is also made by the Association CEO to CIMA Council to attest to the delivery of strategy and member value.

CIMA and AICPA operate through the Association for the delivery of member and student services and support, and both Councils contribute to the development of the Association’s strategic plan throughout the year.


The COVID-19 pandemicThe coronavirus (COVID-19) pandemic is causing enormous consequences across the globe, and we know many of our members, students and the accounting and finance community at large, are experiencing uncertainty and concern. Our mission is to drive a dynamic accounting profession that is ready to meet the demands of a constantly changing, disruptive world. This mission — our commitment to our members and students, the accounting profession and the people we serve — is more important than ever.

We are using technological advances to continue to support our members and students. We are launching the Finance Leadership Programme across the globe; providing continuity to our students by introducing online exams; delivering virtual learning resources, including webcasts on how finance can navigate business impact and planning. We are also creating information sessions with experts from across industry sectors to discuss the accounting and finance implications of the coronavirus pandemic and in active discussions with governments across the globe to support and protect our members and students.

Our activities in 2019During the year, there were 112,617 members, an increase of 2,124 members, and the total student population was 106,364.

The Association supports and delivers value to members of CIMA and AICPA, and most members of CIMA and AICPA are also members of the Association. The combined resources and diverse expertise of the teams drawn from both CIMA and the AICPA to form new centres of excellence within the Association have meant that member and student needs can be responded to more efficiently across the globe, and future needs anticipated more effectively.

As well as services and support delivered via the Association, CIMA carries out its global governance and regulatory responsibilities in relation to standard setting, licensing, monitoring and compliance.

In 2019 we:• Celebrated our centenary through several events held in

the UK and across the globe highlighting the Institute’s achievements and contributions to the profession.

• Launched our updated CGMA® Competency Framework and Syllabus in January 2019. This was developed following extensive research into the Future of Finance, enabling us to reimagine our profession by understanding how the role of finance is changing in the digital age. We support our members to learn, unlearn and relearn to keep their skills and knowledge up to date.

• Launched the Digital Mindset pack comprising free CPD bundles, including on-demand learning courses focused on developing future-focused skill sets needed for a digital era.

• Introduced innovative campaigns to engage with our audience in a new way, embracing new technology and new channels, significantly increasing our engagement.

• Developed an updated Code of Ethics and, to support October ethics month, launched a six-day Facebook Messenger challenge on ethics. Each day of the challenge was designed to link back to one of our resources for an interactive way to introduce the Code of Ethics changes and reinforce the importance of ethics to our members and followers.

• Launched the CIMA Insights blog in March 2019, which delivers member value through educating, informing and engaging with members. This blog features a range of topics with a particular focus on automation, blockchain, cybersecurity, data analytics, ethics, and soft skills required by management accountants. It also highlights the expertise of our global management accounting research and development team, averaging over 20,000 views every month.

• Posted more than 1.3 million jobs last year onto CIMA MyJobs board, and as a result we saw a 40% increase in job applications. We are expanding our support to not only help our members apply for jobs but also obtain the jobs. On 15 January 2020, the Association launched the Association Careers Hub, a consolidated careers hub for both management and public accounting. The Hub contains global management and public accounting jobs, career advice, CV and interview coaching products and services, virtual career fairs, and more, with new services being added regularly.

• Began the endpoint assessment for Level 4 and Level 7 accounting apprenticeships, exceeding our targets. Level 4 is equivalent to the first year of an undergraduate degree and aligns with the CIMA Certificate in Business Accounting, and Level 7 is equivalent to a master’s degree and the full CIMA qualification. We approved a policy that, on completion of a Level 7 apprenticeship, an apprentice can apply to become a member of CIMA.

• Continued to improve member experience and service provision. We have addressed some of the basic issues with payments, and we are seeing an improvement in the experiences of our members and students. More work is taking place in this area as we modernise our core systems, remove friction, and re-engineer the experience, keeping members at the heart of what we do.

• Raised our profile and awareness of management accounting through media, engagement with employers and our global advocacy function. We also championed the strength and relevance of management accounting through convocations and student events, instilling ambition in candidates to complete their student journey and reimagine progression to membership.


• Took the CGMA Leadership Academy for aspirational new members to Kuala Lumpur, extending the global reach of this initiative. Members received intensive training on strategic thinking, self-leadership, volunteerism and professional issues, and I am pleased that members are now volunteering for governance roles within CIMA and the Association.

• Continued to build relationships with leading global employers, providing our members with the latest market insights and international trends to help them stay informed and confident in today’s rapidly changing business environment.

• Continued to provide input into the strategic direction of the Association of International Certified Professional Accountants (the Association).

The UK Corporate Governance CodeCIMA is committed to reaching and maintaining the highest standards of corporate governance and in so doing supports the UK Corporate Governance Code, published by the Financial Reporting Council. The Code is principally for listed companies, and, as such, CIMA is not obliged or in some respects able to follow it completely. However, CIMA Council is committed to adopting best practice governance processes and therefore chooses to apply the Code to CIMA’s operations as far as it is applicable and appropriate for a professional body incorporated by Royal Charter. This report aims to show how the Council has adopted and supported the Code’s principles in the interests of best practice.

Council is also cognisant of its stewardship responsibilities towards the profession and works, where applicable, in accordance with the principles of the UK Stewardship Code. It gives careful attention to its responsibility to drive change, so that the profession remains well-positioned and our members are equipped with the right skills and knowledge to meet the growing demands of business while protecting the public interest, including work on social, sustainability, and environmental responsibilities.

The CouncilThe governance, overall oversight, and control of the Institute are the responsibility of the Council (‘Council’), which currently comprises up to 58 members. Council is led by a team of Honorary Officers including the President, the Deputy President, the Vice President and the Immediate Past President. The other members include up to 38 Fellows elected by constituency; up to 12 members co-opted based on the skills and experience they bring; and 4 members of the AICPA who are also CGMA designation holders.

The Council is responsible for setting standards, for the regulation of members in line with the objects of CIMA’s Royal Charter, and for representing the interests of, and reporting to, the general membership. It approves any changes to the regulations which form part of the constitutional documents and is the ultimate

authority within CIMA. All members of the Council are equally responsible for ensuring that the best interests of the general membership are considered in the decision-making process.

Upon appointment, all new members of the Council are provided with an induction designed to provide closer understanding of CIMA’s governance structure, role, responsibilities and the way in which the Council meetings are conducted. Members of the Council may not be remunerated for their work for CIMA, except as permitted by the Royal Charter, Bye-laws and Regulations. A register of Council members’ interests is maintained, which details any personal or business interests that could give rise to a conflict of interest between CIMA and other bodies.

Presidential termAs President, I was pleased and proud to have been the honorary leader of CIMA for one year, during which time I chaired the Council and represented the interests of CIMA externally, including to the Government, the public, the accounting profession, regulatory bodies, employers, and the media. During this year, I was also Chair of the Board of the Association of International Certified Professional Accountants (the Association) and the Management Accounting Board of the Association.

At the beginning of the presidential year, I presented to Council a plan on how we could advance the CIMA and Association strategy and engage with Council on that. The theme for CIMA and the Association was ‘Reimagine’ as we seek to reimagine what we do and how we do it. Our proposition was ‘If it doesn’t challenge you, it doesn’t change you. Growth happens outside our comfort zones.’ We set out to explore how we can reimagine the profession, gaining global insights into what fellow finance professionals are doing to keep our profession relevant while maximising opportunities in a rapidly changing world.

During the year, we focused on:• Engaging members and students with our focus on re-

imagining the profession and ensure their ongoing ability to meet future challenges. In our outreach, we heard from members that they are concerned about their careers, they look to our organisation for the latest market insights and international trends, they count on our global advocacy, and they want their member experience to be seamless. We are answering these requests and more with new and updated offerings outlined earlier in this report.

• Demonstrating the strength of our Association as President of CIMA and Chair of the Association Board, ensuring connectivity and understanding of our unique position and influence and the benefits it provides to our members and students.

• Delivering a digital profession by delivering on the outcomes of our future of finance research, encouraging members to reimagine how they add value within organisations, and bringing human intelligence to digitalisation.


A subject close to all our hearts, and one we have championed, is social mobility. In September, the CIMA President’s Event included a conversation with Dr Wanda Wyporska, who founded the Equality Trust charity, which works to reduce socioeconomic inequality. Wanda told us about her journey, shining a light on the challenges she encountered and educating the audience about how they are in a position to encourage social mobility in their organisations. As a first step toward social mobility, we are starting an initiative to broaden diversity and inclusivity within CIMA’s governance.

Throughout the year we reported to Council on how we met the objectives identified at the beginning of the year, through the meetings we held and organisations and individuals we visited within the target groups. Our objectives include:

• Drive member engagement and value.

• Emphasise how the competency framework and the professional qualification, and our regular updates to both, strengthen the employability of our members and future members.

• Profile CIMA and the Association as the leader in driving the future of finance and the expert in defining the future skills and competencies needed.

• Drive awareness and recognition that we are the most influential body of professional accountants.

• Strengthen our collaborative network of partners.

• Build/deepen our relationship with key employers and drive the value and demand of the designation.

• Showcase that we are at the forefront of driving the relevance of the finance function globally.

Council meetingsThe President, together with the team of other Honorary Officers, provides direction to the Council in its deliberations and is responsible for ensuring the democratic process of the Council and the management of the meetings. The Council met five times in 2019, of which three meetings were in-person and two meetings were virtual. At each of its meetings, it has focused on matters of strategic importance to management accounting as well as covering mainstream business items. Going forward, and in line with the changes enabled via the Council review, we will be holding two face-to-face meetings, each of two days duration, with intermittent and shorter virtual meetings in-between. One of those face to face meetings will be held in London in tandem with the AGM, and the other in one of our key markets to enable greater engagement with members and students across the globe.

As a result of restructuring the frequency and duration of its meetings, Council is now able to devote much more of its meeting time to debating matters of strategic importance to the profession, engaging with external experts on change drivers

— which in 2019 included improving the customer experience — data analytics, and digital readiness. Council’s strategic discussions form part of the input to the Association’s strategy.

Council reviewIn 2018, Council posed the question as to whether it is fit for purpose going forward and, to that end, commenced a review of Council, setting up a working party. The Working Party concluded its assessment in October 2018 and presented options of what a future Council might need to look like to discharge its responsibilities effectively. These options include refocusing Council meetings to reflect CIMA’s global footprint, refreshing the number and length of Council meetings, reviewing Council members’ tenure and size of Council, and widening the group who can be members of Council, including introducing Association members and lay members onto Council.

Council members voted on the options, leading to proposals that were developed for approval by Members last year with more to follow, most likely in 2021. Honorary Officers have been meeting with executives to develop implementation plans, each taking lead responsibility for an aspect of the implementation that aligns with their Honorary Officer area of responsibility. This has allowed for the proposals to be planned and developed to a sufficient level before submission to the membership at a General Meeting.

GovernanceUnder the Charter, the chief executive is the most senior staff member of CIMA by whatever title they may be known. The role of the chief executive was fulfilled by the Secretary General. She is the prime source of operational and governance information and advice for the Council and committee members and, with the assistance of the Corporate Affairs department, is responsible for ensuring that adequate and timely information is available to allow them to prepare for each meeting.

The Council delegates’ activities within CIMA’s governance in line with an annually updated scheme of delegations and authorisations to the appropriate committees and the Secretary General. Following the formation of the Association, the Council has also authorised the Association Board to carry out certain strategic, service and support activities. The Council, however, retains responsibility for ensuring that CIMA’s Royal Charter objects and responsibilities continue to be upheld, and for ensuring the Association delivers on its assurances and protections in respect of the same.

To ensure the Council is meeting its obligation to consider the best interests of members, all members of CIMA are entitled to attend the AGM, to vote in person or by proxy on matters required to be referred to the membership, and are invited to complete regular satisfaction surveys.


Financial reporting responsibilities of the CouncilThe Bye-laws of CIMA require the Council to ensure that financial statements are prepared for each financial year, and that they give a true and fair view of the state of affairs including a surplus or deficit for that period.

In preparing those financial statements, the Council, in accordance with best practice, is required to:

• Select suitable accounting policies and then apply them consistently.

• Make judgements and estimates that are reasonable and prudent.

• State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements.

• Ensure that the financial statements are prepared on the going concern basis, unless it is inappropriate to presume that CIMA will continue in business.

• Provide the external auditor with all information required in order for them to complete the audit.

The Council is not aware of any relevant information that has not been disclosed to the external auditor. The Council is responsible for ensuring the maintenance and integrity of the financial information included on CIMA’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Going concern and COVID-19Proper books of account are maintained by the direction of the Council, as required by the Bye-laws of CIMA. These accounts must disclose, with reasonable accuracy, the financial position of CIMA at any time. Council has assessed CIMA’s financial position noting it has a strong financial position with cash of £14.8m at 31 December 2019, good visibility of income with the long-term nature of membership, of which most of its member subscriptions for calendar year 2020 having been collected through 31 March 2020. CIMA has strong plans in working with the Association to successfully manage the business risks and impact of COVID-19. Various income streams are likely to be affected by COVID-19, including income from exams and promoting competency globally. However, CIMA is taking several actions to minimise the impact to these income streams, including offering our exams and products via remote testing and digital delivery. Furthermore, CIMA is proactively reducing expenses in areas including meetings and travel and other non-member facing expenditures. The financial statements are prepared on a going concern basis as the Council is satisfied that there is a reasonable expectation that there are adequate resources to continue in operational existence for the foreseeable future.

Appointments CommitteeThe Appointments Committee met four times in-person and made decisions out of committee three times. The list of Committee members who served during the year is provided at the end of this report.

The Committee has delegated authority and responsibility for coordinating the arrangements for all the governance elections, including elections to the Council, selection of the next Vice-Presidential candidate for recommendation to the membership, policy committee chairmen, and ‘without portfolio’ members of the Appointments Committee. It also has delegated authority from the Council to appoint individuals to represent the Institute on other non-Institute bodies or organisations and it makes recommendations to Council for members of the Association’s Nominations Committee and at large members of the Association Board. It appoints the Chairmen, Vice Chairmen, and members of the Conduct Committees, through an independent selection process in accordance with the Laws of the Institute. As a part of its delegated responsibility, it also approves nominations for the Institute medals and other awards. Its decisions and nominations are made in accordance with the Royal Charter, Bye-laws and Regulations, and the legal and procedural framework that governs the functions of this Committee.

The Appointments Committee is responsible for overseeing the selection and recruitment of members/individuals to serve on CIMA’s committees. In 2019, the Committee led on the establishment of and appointments to the newly formed Global Member Engagement Committee. To provide a balance of continuity and bring in fresh skills and experience, careful planning takes place to allocate members to committees who are appropriately skilled and experienced members with geographical balance, a rotation of members, good member development, and succession planning.

Building up talent for the future is an important initiative for the Committee. To achieve this initiative, the Committee has developed and keeps up to date a talent pool of individuals interested in governance roles. The talent pool has become the primary source for appointments and selections and has increased the range of individuals available to the Committee for selection. The Committee is working towards improving the information available and the methods used to attract volunteers, including improving diversity and inclusivity within CIMA’s governance bodies.

The Committee is also responsible for determining and approving modifications to the terms of reference for the CIMA Committees. In 2019, it received and recommended to Council for approval revisions to the terms of reference of the Professional Standards Committee. These revisions were necessary to ensure the role and composition of the Committee aligned to regulatory requirements.


In 2019, the membership approved new tenure proposals for members of Council which will enable members who join Council for the first time from the 2020–21 governance year to return to Council for a new term after a 6-year break period. The Appointments Committee is overseeing the implementation of the new governance arrangements and clarity in the application of tenure provisions.

The Appointments Committee ensures that any payments to Council members for services to CIMA are in accordance with the Bye-laws and carries out oversight of CIMA’s expenses policies. In accordance with the revisions approved by members at the AGM in 2019, this year the Committee has worked on the principles to be applied for determining a fixed nominal payment of a President’s honorarium and a nominal employer compensation that come into effect from the governance year that begins from the conclusion of the AGM in 2022.

The Committee began a programme of reviews that will continue into 2020. They include a review and refresh of the Honorary Officer, Council member, and Secretary General roles and responsibilities; the methods of voting for elected positions; and the Vice-President nominate selection process.

Professional Standards CommitteeCIMA’s work in professional standards included the implementation of a new approach in CPD monitoring and compliance, backed by the approval of significant changes to the CPD provisions in the Royal Charter, Bye-laws and Regulations. This combination of measures has put in place a much more effective mechanism for ensuring compliance with the Regulations, as well as supporting members to use CPD to maintain their relevance and competence throughout their careers.

A great deal of staff and Committee time was dedicated to CIMA’s role as the anti-money laundering (AML) supervisor for members in practice. This included the implementation of a raft of changes to our supervision structure and tools to accord with the recommendations of the oversight regulator, the Office for Professional Body Anti-Money Laundering Supervision (OPBAS). This has, for instance, resulted in a new standing report to the Committee (and to Council) on AML supervision, as well as the amendment of the Member in Practice (MiP) Rules to introduce more effective powers of enforcement for non-compliance.

We continued to meet national and international regulators on a regular basis to discuss issues of mutual interest in relation to regulatory oversight, and responded to consultations and exposure drafts, including on matters relating to ethical standards and codes. In that area, most significantly, we revised CIMA’s Code of Ethics to incorporate the latest changes to the IESBA Code. The new Code was launched on 1 January 2020, accompanied by an information campaign to inform members of the changes and their significance for management accountants. The Ethics part of our website was entirely refreshed, generating a significant increase in web traffic.

The Institute’s work to uphold the standards and conduct of its members and students remains at the core of its public interest obligations. It is assisted in this by three independent conduct committees which together met on 28 occasions during the course of the year, hearing 36 cases and 6 appeals.

Membership CommitteeThe Membership Committee is responsible for overseeing the policies, criteria, and standards governing membership of CIMA.

In 2019, the Committee reviewed pathways into membership, specifically the Finance Leadership Programme and Apprenticeships. The Finance Leadership Program (FLP) takes students through learning, assessing their knowledge and understanding as they progress through each stage, and it was developed following research conducted into learning methodologies. The programme covers the same competencies and curriculum as traditional delivery methods and must be completed in a fixed time period. The Committee recognised that completion of the FLP, case studies, and practical experience requirements is both an innovative and credible route to becoming an Associate member of CIMA.

CIMA was approved by the Institute for Apprenticeships as an endpoint assessor organisation for Level 4 and Level 7 apprenticeships in accounting. The Membership Committee approved that, upon completion of Level 7 UK Apprenticeship and making an application to CIMA, candidates can be admitted to CIMA membership. Apprentices are working during their apprenticeship and complete a work project in the final year in addition to the endpoint assessments. The Committee concluded and approved that this was equivalent to the practical experience requirement for CIMA members.

The Committee also agreed that applicants be able to use the membership application process or the membership application tool to apply for Associate membership, while processes and procedures are reviewed. It recommended that video conferencing be trialled for face-to-face assessments to enable wider global reach and agile assessments, and this was implemented successfully during 2019.

The Committee is responsible for the appointment of assessors, and in 2019 appointed new assessors to ensure demand for timely assessments could be met. It undertook its annual review of the roles assessors perform, ensuring each was allocated to the role appropriate to their level of skills and experience.

The Committee has been focusing on future-proofing the standards for membership, taking into account the evolution of technology and digitalisation. Its focus is on ensuring that the needs of future members are met as well as improving the customer and membership experience for current members. The Committee will continue this work into the next year.


Global Member Engagement CommitteeThe Global Member Engagement Committee was formed in Q4 2019 and held its first meeting in November. Its role is to review existing member support network structures across the globe, as well as current member support activity, ensuring appropriate structures are put in place to provide added value to them. The Committee is the conduit between Council and the member support networks.

The Committee will receive reports from the regional network committees on their activities and help them develop consistent standards of support to members, defining and disseminating best practices on member engagement and looking at new ways of engaging with members. It will also, where possible, collaborate with the Association’s Regional Advisory Panels.

The Committee is at the early stages of its work plan, developing a knowledge base of the current structures, roles they perform, identifying the gaps in member support and engagement.

Charitable trusts and other fundsThe CIMA Benevolent Fund is a registered charity, created to provide assistance to members and ex-members and their families in times of hardship. The fund is administered by a committee comprising Council and non-Council members of CIMA on behalf of CIMA, the sole trustee.

The Anthony Howitt Lecture Trust, a registered charity created to advance education in accounting and related subjects, takes the form of a lecture, normally biennial, by eminent speakers on matters of interest to accountants and other leading members of the business world. The trust receives income from funds originally gifted from the founder, Anthony Howitt. The trustees are all current office holders of CIMA.

The General Charitable Trust is a registered charity and was formed for the advancement of education in the subjects of accounting, management accounting, electronic data processing, costing, auditing, taxation, applied economics, finance, and other related subjects of an educational nature. The trust is an independent body with an arm’s length relationship with CIMA.

Social responsibilityCIMA takes its role in promoting responsible business practice seriously. Members and students have a duty to observe the highest standards of conduct and integrity and to uphold the good standing and reputation of the profession. All students are issued with the CIMA Code of Ethics on commencement of their training, are examined in ethical decision-making, and must have regard to the Code in their work. The Code, which was updated in 2019, is based on international standards and defines the core principles that an Associate or Fellow of the Institute or a CGMA must uphold: integrity, objectivity, professional competence and due care, confidentiality, and professional behaviour. Practical guidance on identifying and resolving ethical conflicts is provided through dedicated resources and helplines. CIMA is also committed to promoting to members their wider duty of care to the public interest, beyond their employer or client, as set out in the CIMA Code of Ethics.

As an Investor in People, CIMA also strongly recognises the importance of its own employees, and the link between satisfied staff and satisfied stakeholders. To this end, it has implemented extensive health and safety, employee satisfaction, learning and development, performance appraisal programmes, gender pay gap reporting, and a statement and policy on modern slavery.

Amal Ratnayake, FCMA, CGMA President8 April 2020


Financial performance review SummaryOur work in 2019 was all about transformation for the profession, our members, students and the organisation. We took bold steps to become more agile and more technologically adept to better help members and students keep pace with a blistering — and accelerating — pace of change.

Through the Association of International Certified Professional Accountants (the Association), we continued to leverage the combined strengths of The Chartered Institute of Management Accountants (CIMA) and the American Institute of Certified Public Accountants (AICPA) to increase value to our members and students. We made significant progress in each of our five key strategic priorities:

1. Promoting Competency Globally

2. Open U.S. Market for CGMA

3. Future-Proof Public and Management Accounting

4. Evolve Auditing in the Future

5. Transform our Organisation

These five initiatives required significant investment of human and financial capital and/or collective leadership mindshare. We leveraged the skills and know-how of dedicated support teams to implement our strategic initiatives and allocate surplus income to fund not only our operations, but also the execution of our strategy. While our strategy consists of 3-year initiatives, each is continuously evaluated and adjusted to shifting marketplace dynamics.

Details about our performance in these and other areas are included in the “Results” section below.

In addition, CIMA and the AICPA continued its transfer of assets, liabilities and intellectual property (ALIP) to the Association. It is expected that most ALIP will transfer to the Association over the next few years; however, pension scheme liabilities of both founding bodies will not transfer to the Association. CIMA’s member subscription income is used to support its members in management accounting, fulfil the CIMA pension scheme obligation, and support the growth of the Association.

While CIMA continues to have an independent audit, its operating results will be combined with the AICPA’s as part of the Association’s integrated annual report, which will be approved by the Association’s Board of Directors and available to all CIMA and AICPA members. CIMA’s audit report should be read in conjunction with the Association’s integrated annual report, which includes details of internal audit, risk management, executive remuneration and more.

ResultsHere are a few highlights of the top accomplishments we achieved this past year to move the organisation and the profession forward:

1. �Promoting�competency�globally�We lead the global profession in competency development and lifelong learning — learn, unlearn, and relearn.

Our tools and resources help members and students advance along a learning journey — from developing a basic understanding of topics to being able to embed technologies and tools into their work in meaningful ways. At the beginning of 2019, we set out to provide products to individuals and organisations that help them navigate digital disruption. Through the Go Beyond+ Disruption learning series, accounting and finance professionals can build competencies necessary for a digital world by using our resources and products on blockchain, cybersecurity, risk management, data analytics, robotic process automation, artificial intelligence, finance transformation and people skills. This year, the Go Beyond+ Disruption learning series exceeded 30,000 total downloads.

We also sought to engage the broader accounting profession. In June, we launched a partnership with Coursera, a global leader in online education, and published our “Introduction to Blockchain” course on their platform, expanding our organisation’s reach to approximately 33 million learners. We are currently working on adding our “Making the Case for Robotic Process Automation” course to their offerings, which will be Coursera’s first robotic process automation content for business professionals.

The new products and resources developed throughout the year contribute to the generation of human capital for our members and students, as they help accounting and finance professionals to improve their ability to perform their roles.

2. �Open�U.S.�market�for�CGMA.�We seek to professionalise management accounting in the United States.

In 2019, we launched the operational level of the CGMA Finance Leadership Program (FLP). The FLP is an online learning and assessment platform that uses interactive, learn-by-doing methods to teach candidates the competencies required to become a CGMA designation holder. It includes three levels: operational, management and strategic. Candidates enter the respective level depending on their experience and education. This allows us to offer skill development to everyone from entry-level staff to high performers at the mid-level and senior leadership.

To build awareness of the FLP, we refreshed our marketing plan and continued our efforts to promote awareness of the CGMA designation to members, students, business leaders, and the public through influencer emails, targeted social media campaigns, media outreach, and public relations.


We also planned to foster relationships with academics and U.S. universities to increase student interest. We entered our first agreement with a U.S. university, Brigham Young University (BYU), to bring the FLP to students. BYU, a top 10 accounting school, will offer the FLP to its accounting, finance, and MBA students in 2020.

The completeness and promotion of the FLP generates human capital in the U.S. market, as professionals become qualified to perform their roles within their organisations.

3. Future-proof�public�and�management�accounting.�We constantly evolve the requirements, pathways, and delivery of learning and assessments for our qualifications.

We set lofty goals for this initiative in 2019, including establishing new apprenticeship programs and delivering value-added learning through the Future of Finance research. In the area of public accounting, we sought to reimagine the CPA licensure model and exam, and we promoted the value of integrated tax and planning services.

In the area of management accounting:

• We released findings from our Future of Finance research, which revealed how expanding mandates for finance, digital technologies, and new sources of data are changing the shape of the finance function. We used it to shape our white paper, Re-inventing finance for a digital world, and to update the CGMA Competency Framework and Syllabus. The first Objective Tests under the updated syllabus took place in November 2019. We also launched Future of Finance as learning and experienced a record level of interest in the webinars, with more than 10,000 member and student registrations and 3,600 attendees.

• We hosted well-known expert speakers from various industries at the CGMA Africa Conference. The event explored what the finance function of the future will look like. Association Chair and CIMA President Amal Ratnayake, FCMA, CGMA, opened the conference and participated in a panel discussion to explain how finance professionals can prepare to discover the transformative opportunities emerging from new technologies.

• We updated the CIMA Code of Ethics in October to better help finance professionals deal with ethics and independence challenges in the modern digital world. The adoption of the code creates important social value as it promotes the highest standards of conduct and integrity.

• We ended the practice of charging exemption fees for new students who hold a relevant degree or qualification, enabling them to start learning and book exams much quicker and removing the friction within the exemption confirmation process.

• We expanded our apprenticeship offering, rolling out the Level 7 pathway to prospective CIMA members living in England.

One strength of the Association is its breadth across management and public accounting — driving advancements that ultimately benefit the entire profession. In the area of public accounting, we developed a potential new CPA licensure model, along with the National Association of State Boards of Accountancy (NASBA), that better reflects the skills and knowledge CPAs increasingly need in a rapidly changing marketplace. We also sought to evolve the U.S. CPA Exam to better align with professional practice and reflect the needs of today’s profession and the work of newly licensed CPAs. Moreover, after more than six years of strategy, relationship building, and persistence, we were awarded the .cpa top-level domain from the internet’s global governing body, creating significant intellectual value for us.

We continued to enhance sustainability initiatives within the profession and contribute to the generation of natural value by supporting Accounting for Sustainability (A4S), an HRH The Prince of Wales charity, and being an active member of its Accounting Bodies Network (ABN).

4. Evolve�auditing�in�the�future.�We are dedicated to defining auditing in the future and the future of assurance services through foundational guidance, research and exploration of new technologies.

We took a major step in a transformational project to adapt auditing for the age of artificial intelligence. Forty of the 100 largest firms in the U.S. agreed to contribute $50 million in funding over three years to build the Dynamic Audit Solution (DAS). It is a state-of-the-art technology platform and auditing methodology, developed in collaboration with these firms, CPA.com and our technology partner CaseWare International, that will be available to more than 14,000 U.S. firms with audit practices. After finalising plans in 2018, the DAS development team began the build in 2019. By December, we successfully executed User Acceptance Testing content and functionality that has been developed to date. We are targeting the release of version 1 of the product to support audits of commercial enterprises by the end of 2020, as we are experiencing significant interest from the profession, both in the U.S. and internationally.

5. Transform�our�organisation.�We are reimagining how, where, and what services we provide to today’s and tomorrow’s members and students.

This year we continued our three-year transformation journey of reimagining how, where, and what services we provide to support the profession and members — today and tomorrow. We focused on removing friction, enhancing and streamlining our services and products, and serving the needs of our members and students. We made significant technological changes to keep pace with changing customer expectations.


We expanded our hiring and grew our third operational hub in Kuala Lumpur to serve our students, members and employees better while growing our Asia-Pacific presence. Cost savings from opening the new hub totalled £2.4m in 2019. The KL hub was also recognised with an excellence award in finance and accounting.

Further, we boosted our efforts around creating a digitally centric organisation. We grew our relationship with EY Seren and Accenture by signing an extended Managed Services agreement (MSA). This agreement allows us to move forward in the next phase of our organisational and business model evolution while providing us with tools, expertise, and capabilities to help deliver our strategic objectives.

From a financial performance perspective, CIMA, excluding charitable trusts, generated an operating gain of £0.2m in 2019 as compared to an operating deficit of £3.8m in 2018. CIMA experienced £6.7m in revenue growth as a result of growth in membership, exam, and promoting competency globally revenue. We invested this revenue back into our strategic priorities to support our members, students, and the profession.

Pension schemeCIMA operates a defined benefit pension scheme, which has been closed to future accruals since 2012. The deficit increased by £2.7m to £15.6m, primarily due to a decrease in the scheme’s discount rate. The scheme finalised its tri-annual valuation in the second quarter of 2019, resulting in the current deficit being recovered by February 2027. Both CIMA and the independent pension scheme trustees work to manage liability exposure and to optimise the risk and return balance for asset management.

ConclusionAs noted earlier, CIMA continues to have a stand-alone audit, and its operating results will be included in the combined, audited financial statements of the Association, available to all CIMA and AICPA members. The combined resources of the Association will provide a stronger platform to fulfil the Association’s vision and mission.

Scott H. Spiegel, CPA/CITP, CGMA Chief Financial Officer 8 April 2020


Committee membersDoug Roosa chairs the Audit and Finance Committee (the ‘Committee’) of the Association. Mr. Roosa serves as Chief Internal Auditor with the State of Michigan’s Public Safety and Quality of Life division, and formerly held assurance leadership roles at General Motors and Masco. The remaining Committee members who have served during the period are Paul Ash, Anita Baker, Sarah Ghosh and Jeffery Porter, each with extensive business experience.

The role of the committeeThe Audit and Finance Committee of the Association exists to review, and challenge where necessary, the actions and underlying opinions and judgements of management and employees, in relation to the audited annual financial statements of CIMA and the audited annual financial statements of the Association (and interim statements and reports where appropriate) together with its various regional boards, charities, trusts, pension and benevolent funds, and the draft annual accounts of CIMA and AICPA subsidiaries. All such considerations are made before recommending such reports and statements where applicable to the Board and Council for endorsement and approval. Throughout the year, the Committee meets separately with key staff of the Association’s management team, internal audit and the independent external auditors.

In addition, the Committee also provides financial oversight to the Association’s budget and forecasting process.

The Chairman attends the Council meeting at which the annual accounts of CIMA are approved to give him the opportunity to comment on any matters pertaining to the annual accounts, the underlying judgements and other matters of material relevance that have been discussed at the Committee during the preceding year.

During the year, the following items were reviewed:• Terms of Reference of the Committee and the Internal Audit,

Risk & Compliance (IARC) function;

• Annual IARC Project Programme;

• Financial statements and accounts;

• All internal and external audit reports;

• Data protection compliance;

• Business transformation; and

• Whistleblowing arrangements and compliance.

Additionally, the Committee takes an active interest in audit committee best practice and discusses key industry priorities at its meetings. Members are encouraged to attend appropriate development opportunities.

External auditSaffery Champness LLP was reappointed by the membership at the AGM as CIMA’s external auditor.

The Committee ensures that the external auditor remains independent of CIMA, AICPA and the Association in all material aspects and that they have adequate resources available to them to enable the delivery of their audit objective to the membership. The Committee reviews the overall performance of the auditors annually and is responsible for making formal recommendations each year to the Council on the position of the external auditors.

As detailed in the Committee’s Terms of Reference, the auditors are precluded from engaging in non-audit services that would compromise their independence and objectivity or violate any laws or regulations affecting their appointment as auditors.

£209K was incurred on non-audit services during the year. This was primarily in tax advisory services.

Internal auditThe Association has an Internal Audit, Risk & Compliance function (IARC) who participate in each Committee meeting. The Senior Director of IARC reports functionally to the Committee, and administratively to the CFO, with a dotted line to the CEO of the Association.

The internal audit programme is based upon an annual risk assessment, that takes into consideration the Association’s strategy, Enterprise Risk Management programme, in combination with discussions with senior management, the external auditors and the Committee. The 2019 programme covered:

• Internal controls over financial reporting;

• Cybersecurity;

• Regional activities;

• CGMA and CPA Examination activities;

• Association business transformation activities;

• General Data Protection Regulation (GDPR) compliance.

The Committee has received reports on the work carried out by internal audit and the results of their investigations including management responses and timelines. If any such recommendations, in the opinion of the Committee, are unreasonably rejected or delayed by management then these would be reported to the Council. No such report was necessary in 2019.

On behalf of the Committee,

Doug Roosa, CPA, CGMAChairman of the Audit and Finance CommitteeAssociation of International Certified Professional Accountants

8 April 2020

The Audit and Finance Committee


OpinionWe have audited the financial statements of The Chartered Institute of Management Accountants (CIMA) (the ‘parent entity’) and its subsidiaries (the ‘group’) for the year ended 31 December 2019 which comprise the consolidated statement of comprehensive income, consolidated statement of financial position, consolidated statement of changes in funds, consolidated cash flow statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union.

In�our�opinion:• the financial statements give a true and fair view of the state

of affairs of the group as at 31 December 2019 and of the group’s total comprehensive income/(expense) for the year then ended; and

• the group financial statements have been properly prepared in accordance with IFRSs as adopted by the European Union.

Basis for opinionWe conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concernWe have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

• Council’s use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

• Council have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other informationCouncil is responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exceptionIn the light of the knowledge and understanding of the group and its environment obtained in the course of the audit, we have not identified material misstatements in the Financial performance review.

Responsibilities of CouncilAs explained more fully in the Reporting responsibilities of the Council set out on page 8, the Council is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as Council determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, Council is responsible for assessing the group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless Council either intend to liquidate CIMA or to cease operations, or have no realistic alternative but to do so.

Independent auditors’ report


Auditor’s responsibilities for the audit of the financial statementsOur objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken based on these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our reportThis report is made solely to CIMA’s members, as a body, for and only for management’s purposes to assist the Council to discharge its stewardship obligations and fiduciary responsibilities in respect of CIMA under the terms of the Royal Charter and Bye-laws in accordance with our terms of engagement letter dated 17 April 2019 which was approved by the members on 7 June 2019 and for no other purpose. Our audit work has been undertaken so that we might state to CIMA’s members those matters we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than CIMA and CIMA’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Saffery Champness LLP Chartered Accountants Statutory Auditors Suite C, Unex House Bourges Boulevard Peterborough Cambridgeshire PE1 1NG

8 April 2020

http://frc.org.uk/auditorsresponsibilities


Results for the year are all derived from continuing operations.The notes on pages 19 to 45 form an integral part of these financial statements.

Consolidated statement of comprehensive incomeFor the year ended 31 December 2019

2019 2018

Restated

Note £’000 £’000 £’000 £’000

Income 60,587 53,928

Member and student subscriptions 38,780 36,545

Exams and exemptions 14,831 13,321

Promoting competency globally 5,331 4,285

Advertising 613 223

Investment 59 (446)

Other 1.5 973 –

Expenditure (60,382) (57,753)

Cost of goods sold (3,977) (3,597)

People costs (22,244) (23,145)

Professional services (14,761) (13,857)

Meetings and travel (4,523) (4,534)

Occupancy (2,722) (3,597)

Selling (2,414) (2,355)

Depreciation and amortisation (4,446) (2,628)

Office (1,257) (1,844)

Organisational support (1,806) (1,333)

Other (2,232) (863)

Operating gain/(deficit) before charitable trusts and other funds 205 (3,825)

Income from charitable trusts and other funds 41 25

Total operating gain/(deficit) 246 (3,800)

Taxation charge 6.1 (78) (47)

Gain/(deficit) for the year 168 (3,847)

Other comprehensive income

Items which will not be reclassified to net income

Actuarial (loss)/gain on pension scheme 14.2 (3,132) 1,746

Items which may be reclassified to net income

Increase/(decrease) in foreign currency translation reserve 338 (56)

Unrealised gain/(loss) on investment revaluation 649 (319)

Unrealised gain on freehold and building revaluation – 273

Total other comprehensive (expense)/income (2,145) 1,644

Total comprehensive expense (1,977) (2,203)


The notes on pages 19 to 45 form an integral part of these financial statements.

The financial statements on pages 15 to 45 were approved by the Council as at 8 April 2020, and signed on its behalf by:

For the year ended 31 December 2019

Consolidated statement of financial position

2019 2018

Note £’000 £’000

Non-current assets

Property, plant and equipment 7 5,159 4,498

Intangible assets 8 3,507 5,511

Right-of-use assets 2.3 13,759 –

Interest in other investments 9 5,431 4,702

27,856 14,711

Current assets

Trade and other receivables 10.1 4,288 4,167

Cash and cash equivalents 10.2 14,750 11,284

19,038 15,451

Total assets 46,894 30,162

Funds

Accumulated funds (14,381) (11,376)

Fair value reserves 2,949 2,487

Foreign currency translation reserve (2,995) (3,333)

Charitable trusts and other funds 2,826 2,598

(11,601) (9,624)

Current liabilities

Trade and other payables 11 6,650 8,815

Provisions 12 296 294

Subscriptions and fees received in advance 13 19,817 17,310

Lease liabilities 2.3 1,211 –

27,974 26,419

Non-current liabilities

Provisions 12 498 480

Pension scheme liability 14.1 15,588 12,841

Lease liabilities 2.3 14,384 –

Other retirement obligations 14.8 51 46

30,521 13,367

Total funds and liabilities 46,894 30,162

Scott H. Spiegel, CGMA, CPA Chief Financial Officer

Nick Jackson, FCMA, CGMA Deputy President

Amal Ratnayake, FCMA, CGMA President


Consolidated statement of cash flows

2019 2018

Restated

Note £’000 £’000

Cash flows from operating activities

Member and student income 61,328 56,669

Other income/(loss) 1,581 (1,823)

Payments to suppliers (34,423) (28,892)

Payments to employees (17,085) (17,898)

Payments relating to taxes (1,361) (1,425)

Payments relating to post retirement benefits (3,158) (3,003)

Payments lease interest 2.3 (781) –

Activities relating to charitable activities 41 25

Net cash generated by operating activities 6,142 3,653

Cash flows from investing activities

Purchase of property, plant and equipment 7 (1,314) (152)

Purchase of intangible assets 8 (618) (1,224)

Purchase of investments 9 (80) –

Repayment of lease liabilities 2.3 (1,153) –

Investment income 139 167

Net cash (used in) investing activities (3,026) (1,209)

Net increase in cash and cash equivalents 3,116 2,444

Cash and cash equivalents at 1 January 11,284 8,886

Effect of foreign exchange rates

Change in foreign currency translation reserve 338 (56)

Net exchange differences on property, plant and equipment 12 10

Cash and cash equivalents at 31 December 10.2 14,750 11,284

Non cash impact of assets acquired in consolidation – 2,564

Non cash impact of investment in associate eliminated in consolidation


– 441



Consolidated statement of changes in funds


Accumulated funds

Fair value reserves

Foreign currency translation

Total before charities

Charitable trusts and other funds

Group total

Note £’000 £’000 £’000 £’000 £’000 £’000

Balance at 31 December 2017 (9,300) 2,321 (3,277) (10,256) 2,835 (7,421)

Changes in funds for 2018

Deficit for the year (3,822) – – (3,822) (25) (3,847)

Other comprehensive income/(expense)

Unrealised loss on investment revaluation

9 – (107) – (107) (212) (319)

Actuarial gain on pension scheme 14.2 1,746 – – 1,746 – 1,746

Unrealised gain on freehold and building revaluation

7 – 273 – 273 – 273

Foreign exchange loss on translation – – (56) (56) – (56)

Total comprehensive income/(expense)

(2,076) 166 (56) (1,966) (237) (2,203)


Changes in funds for 2019

Gain for the year 127 – – 127 41 168

Other comprehensive income/(expense)

Unrealised gain on investment revaluation

9 _ 462 - 462 187 649

Actuarial loss on pension scheme 14.2 (3,132) – – (3,132) – (3,132)

Foreign exchange gain on translation – – 338 338 – 338

Total comprehensive income/ (expense)

(3,005) 462 338 (2,205) 228 (1,977)




1. Summary of accounting policies1.1 Basis�of�preparationThe Chartered Institute of Management Accountants (“CIMA”) is a body incorporated by Royal Charter and domiciled in the United Kingdom. The financial statements are prepared on the going concern basis, under the historical cost convention, as modified by the revaluation of freehold properties and investments, and in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union and with the IFRS Interpretational Committee interpretations.

CIMA is not required to follow the Companies Act 2006. Under the Royal Charter, CIMA follows the relevant matters mentioned in Part 16 of the Act. It has chosen not to present its entity balance sheet.

In June 2016, the memberships of CIMA and the American Institute of Certified Public Accountants (the “AICPA”) voted to evolve its joint venture and integrate strategy, management and operations. To facilitate such, CIMA and AICPA created two new entities, the Association of International Certified Professional Accountants — UK, (the ‘Association UK’) and the Association of International Certified Professional Accountants (the ‘Association US’). The Association UK and US both launched on 1 January 2017, for which its purpose is to align strategy, management and operations, and to deliver on its mission and vision to create the most influential body of professional accountants driving a dynamic accounting profession worldwide. On 1 January 2017, the CIMA employees were transferred to the Association UK and the AICPA employees were transferred to the Association US.

The Association UK is a company limited by guarantee and formed in the UK. Upon creation, the Association US had 90 votes and 5 each of the votes were held by CIMA and AICPA. On 29 November 2018, the AICPA withdrew from the Association UK and voting rights were redistributed so that CIMA has 51 votes and the Association US has 49 votes, allowing the Association UK to join CIMA’s VAT group. The Association US is a 501 C-6, not for profit incorporated in Washington, DC. The Board of Directors of the Association US includes members of CIMA and AICPA.

The Association US is deemed an associate and is accounted for under the basis set out in note 1.2.

Freehold properties are revalued by a qualified surveyor, on a depreciated replacement cost basis, every three years, or more regularly should management consider that the value has changed significantly. Investments are revalued at the balance sheet date in line with the fair value hierarchy.

Going�concernThe financial statements have been prepared on the going concern basis. CIMA has retained deficits of £14,381,000 after pension provisions of £15,588,000. Council has assessed the viability of CIMA in light of COVID-19 believing that it has adequate financial resources in cash of £14,750,000 at year end, good income visibility with the long-term nature of the membership and strong plans in working with the Association to successfully manage business risks and impact of COVID-19. Council therefore have concluded that it is reasonable to assume that CIMA has adequate resources to meet its liabilities as they fall due.

1.2 Basis�of�consolidationThe consolidated group financial statements comprise the financial statements of CIMA and the wholly owned subsidiary undertakings, charitable trusts and other funds under the control of CIMA, together with a share of the results, assets and liabilities of jointly controlled entities (associates) using the equity method of accounting, where the investment is carried at cost plus post acquisition changes in the share of net assets of the associate, less any provision for impairment.

Control is achieved where CIMA is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect these returns through its power over the investee. A joint venture or associate is an entity established to engage in economic activity, which CIMA jointly controls with its fellow venturers. Losses in excess of the consolidated interest in associates are not recognised, except where CIMA or its subsidiaries have made a commitment to make good those losses and are included in creditors where the investment is impaired.

The consolidated group financial statements comprise the statements of comprehensive income, balance sheets and cash flow statements of CIMA and its foreign operations as detailed in Note 16.

1.3 The�following�statements�are�effective�and�relevant� in the current year:IFRS 15 Revenue from contracts with customers (effective 1 January 2018)

IFRS 9 Financial instruments (effective 1 January 2018)

IFRS 16 Leases (effective 1 January 2019) (Note 2)

Notes to the consolidated financial statementsFor the year ended 31 December 2019


The�following�statements�are�effective�and�not�relevant� in the current year:IFRIC 22 Foreign currency transactions and advance consideration (effective 1 January 2018)

IAS 40 Investment property transfers of investment property (effective 1 January 2018)

Amendment to IFRS 4 ‘Insurance contracts’ regarding the implementation of IFRS 9, ‘Financial instruments’ (effective 1 January 2018)

The�following�statements�may�be�relevant�for�future�periods;�management�assessed�their�potential�impact�and�no�significant�impact�is�expected:IFRIC 23 — Uncertainty over income tax treatments

Amendments to IFRS 9 — Prepayment features with negative compensation

Amendments to IAS 28 — Long-term interests in association and joint ventures

Amendments to IAS 19 — Plan amendments, curtailment or settlement

Amendments to IFRS 3 — Business combinations

Amendments to IAS 1 and IAS 8 — Definition of material

Annual improvements — 2015–2017 cycle

1.4 Adoption�of�new�standardIn January 2016, the International Accounting Standards Board (Board) issued IFRS 16 Leases. IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases. It supersedes the following standards and interpretations upon its effective date:

• IAS 17 Leases;

• IFRIC 4 Determining whether an Arrangement contains a Lease;

• SIC-15 Operating Leases — Incentives; and

• SIC-27 Evaluating the Substance of Transaction Involving the Legal Form of Lease.

IFRS 16 introduces new or amended requirements with respect to lease accounting. It introduces significant changes to the lessee accounting by removing the distinction between operating and finance leases and requiring the recognition of a right-of-use asset and a lease liability at the lease commencement for all leases, except for short-term leases and leases of low value assets.

CIMA has applied IFRS 16 effective on 1 January 2019, using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under IAS 17 and IFRIC 4. The details of accounting policies under IAS 17 and IFRIC 4 are disclosed separately if they are different from those under IFRS 16 and the impact of changes is disclosed in Note 2.3 Changes in accounting policies.

1.5 Income�Streams�and�Recognition:The main income streams are as follows:

Member and student subscriptions are membership fees paid by CIMA members and students holding or seeking the CIMA designation. They are recognised and amortised over the applicable membership period.

Examination income relates to testing the competency of those seeking the CIMA designation and are recognised when the papers are scored and released to candidates.

Exemption fees related to those seeking the CIMA designation who are seeking exemption from certain exams in route to obtaining their CIMA designation. Exemption fees are recognised when the exemption is paid.

Promoting competency globally income is derived from our key strategic initiative to lead the global accounting and finance profession in competency and lifelong learning. The income streams consist of delivering thought leadership, learning products, on-line learning events, competency-enhancing resources on the CGMA store. Revenue recognition for these goods and services can vary and is based upon when the performance obligation has been met.

Advertising income consist of sponsorships and magazine sales advertising. Revenue recognition occurs when the sponsored event occurs or the month of publication, in the case of advertising revenue.

Subscriptions and fees received in advance in current liabilities, represent funds paid to CIMA in the current year, which relate to the annual fees falling due, and are recognised as income, in the year they are earned.

Financial income consists of interest, dividends and gains or losses on foreign exchange. Interest is accrued on a daily basis. Dividends from investments are recognised when CIMA’s right to receive payment is established. Foreign exchange gain and losses are recognized when occurred.

Other Income in 2019 consists of a settlement received from the Financial Reporting Council (FRC). A member of CIMA and CIMA were involved in a hearing brought before the Disciplinary Tribunal of the FRC. CIMA incurred significant legal costs in prior years in defending the organisation. At the conclusion of the case, CIMA was able to recoup a portion of the costs incurred from the fines assessed against the defendants. These funds are shown as other income.

A number of members and volunteers have contributed significant amounts of time to the activities of CIMA. The combined financial statements do not reflect the value of these contributed services because they do not meet the criteria for recognition.


1.6� Expenditure�recognitionExpenditure related to a specific income stream is recognised in the period incurred.

Expenditure related to a specific period of time or service is recognised in that period. Goods or services delivered, for which the invoice has not been received, are accrued for in the accounting period in which they are delivered.

Expenditure incurred delivering the core products or services of CIMA or its ongoing functional activity for which there is no direct revenue benefit is expensed in the accounting period in which the commitment was made.

Gift aid donations made by CIMA to the General Charitable Trust are recognised when paid.

1.7 Financial�assetsFinancial assets are recognised in the CIMA’s statement of financial position when CIMA becomes party to the contractual provisions of the instrument. Financial assets are classified into specific categories. The classification depends on the nature and purpose of the financial assets and is determined at the time of recognition. Financial assets are initially measured at fair value plus transaction costs, other than those classified as fair value through profit and loss, which are measured at fair value.

1.8 Leases

Policy�applicable�before�1�January�2019For contracts entered into before 1 January 2019, CIMA determined whether the arrangement was or contained a lease based on the assessment of whether (1) fulfilment of arrangement was dependent on the use of a specific asset or assets (2) the arrangement had conveyed a right to use the asset.

In the comparative period, as a lessee, CIMA classified leases that transfer substantially all of the risks and rewards of ownership as finance leases. When this was the case, the leased assets were measured initially at an amount equal to the lower of their fair value and the present value of the minimum lease payments. Minimum lease payments were the payments over the lease term that the lessee was required to make, excluding any contingent rent.

Assets held under other leases were classified as operating leases and were not recognized in CIMA’s statement of financial position. Payments made under operating leases were recognized in profit and loss on a straight-line basis over the term of the lease. Lease incentives received were recognized as an integral part of the total lease expense, over the term of the lease.

Policy�applicable�after�1�January�2019

Recognise�a�leaseCIMA assesses whether a contract is, or contains, a lease at inception of a contract. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. CIMA

assesses whether (1) the contract involves the use of an identified asset (2) CIMA has the right to obtain substantially all of the economic benefits for use of the asset through the period of use (3) CIMA has the right to direct the use of the asset. The policy is applied to contracts entered into, or changed, on or after 1 January 2019.

Right-of-use�assetsAs a lessee, CIMA recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets is determined based on the expected life of the lease. The right-of-use asset is periodically reduced by impairment loss, if any, and adjusted for certain remeasurements of lease liability.

The right-of use assets are included and presented in “Right-of-use assets” line item in the statement of financial position. The right-of-use assets are disclosed in note 2.3.

Lease�liabilityAs a lessee, CIMA initially measures the lease liability at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the incremental borrowing rate. Generally, CIMA uses its incremental borrowing rate as the discount rate.

Lease liability included in the measurement of the lease liability comprise the following: (1) fixed payments, including in-substance fixed payments, less any lease incentives (2) variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date (3) amounts expected to be payable under a residual value guarantee (4) the exercise price under a purchase option that the lessee is reasonably certain to exercise, lease payments in an optional renewal period if the lessee is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the lessee is reasonably certain not to terminate early.

The lease liability is included and presented in “Lease liabilities” line items in the statement of financial position. The lease liability is disclosed in note 2.3.

The lease liability is remeasured whenever there is a change in future lease payments arising from a change in an index or rate, if there is a change in the estimate of the amount expected to be payable under a residual value guarantee, or if the lessee changes its assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is


remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. CIMA did not make such adjustments during the periods presented.

Short-term�leases�and�leases�of�low-value�assetsCIMA applies the recognition exemption and elects not to recognize right-of-use assets and lease liabilities for short-term leases of IT equipment that has a lease term of 12 months or less and leases of low-value assets. CIMA recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

Real�estate�leaseCIMA leases buildings for the office space. The lease of office space typically includes an option to renew the lease for an additional period of the same during or after the end of the contract term. CIMA is reasonably certain to exercise the renewal option. The lease of office space does not contain an option to purchase the underlying leased assets at the end of the lease.

1.9 TaxationCorporation tax arises on CIMA’s trading profits, chargeable gains and investment income less any charitable donations by way of gift aid. A provision is made for deferred taxation to the extent that material timing differences are expected to reverse in future periods. No provision for deferred taxation is included in respect of surpluses on revaluation of property and investments.

1.10 InvestmentsInvestments are recognised at cost on the trade date and are restated on the reporting date at fair value. Unrealised gains and losses are recognised directly in fair value reserves until the investment is disposed of or is determined to be impaired, at which time the cumulative gain or loss, previously recognised in fair value reserves, is included in the net surplus or deficit for the period. Income or expense arising on the translation of investments denominated in foreign currencies is recognised as part of the deficit or surplus for the year.

1.11 Property,�plant�and�equipmentFreehold land and buildings are carried at fair value, based on valuations conducted every three years, with subsequent additions at cost. They are depreciated at 2% on a straight-line basis.

Leasehold land and buildings are carried at fair value, based on valuations conducted every three years, with subsequent additions at cost. They are depreciated on a straight-line basis over the remaining lease term. The lease term is the remaining period of the lease plus, when the option to renew the lease rests with the lessee, the second lease period. Leasehold improvements are carried at cost and depreciated on a straight-line basis over the period of occupation.

Other equipment, comprising IT hardware, is carried at cost and depreciated on a straight-line basis at rates varying from 20% to 50%, depending on the useful economic life of the equipment. Small items of furniture and office equipment are expensed in the year of purchase. Cost includes attributable irrecoverable VAT.

1.12 Intangible�assetsIntangible assets comprise computer software and trademarks; these are stated at cost. Cost includes attributable irrecoverable VAT.

Amortisation is charged on a straight-line basis over the estimated useful economic life of the software (between two and five years) and over the duration of the trademark.

1.13 ImpairmentAt each balance sheet date, the carrying amounts of non-current assets with finite lives are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated to determine the extent of the impairment loss.

If the recoverable amount of the asset is estimated to be less than the carrying amount, the carrying amount is reduced to the recoverable amount. Impairment losses are recognised in the consolidated statement of comprehensive income, unless the asset is land or buildings carried at a revalued amount, in which case the impairment loss is treated as a decrease in the fair value reserve.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of the recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised in the consolidated statement of comprehensive income, unless the asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as an increase in the fair value reserve.

1.14 Financial�liabilitiesFinancial liabilities are classified as either financial liabilities at fair value through profit or loss or other financial liabilities.

1.15 Trade�and�other�receivablesTrade and other receivables are stated at original invoice value less a provision for doubtful debts. The recoverability of debt is reviewed on an ongoing basis. CIMA reviews indicators of impairment on an ongoing basis and where such indicators exist makes an estimate of the assets recoverable amount.

1.16 Trade�and�other�payablesTrade and other payables are recognised at amortised cost.


1.17 Cash�and�cash�equivalentsCash and cash equivalents comprise cash in hand, balances with banks and financial institutions, credit card receipts cleared and in transit to CIMA, and investments in money market instruments representing short term, highly liquid investments, which are readily convertible to known amounts of cash.

1.18 Retirement�benefitsFor defined benefit plans, the cost of providing benefits is determined using the projected credit method, with valuations for the purposes of IAS 19 being carried out at each balance sheet date. Past service cost is recognised immediately, to the extent that benefits are already vested, and otherwise is amortised on a straight-line basis over the average period until the amended benefits become vested.

The amount recognised in the consolidated balance sheet represents the present value of the defined benefit obligation, reduced by the fair value of plan assets. Any asset resulting from this calculation is limited to the unrecognised actuarial losses and past service cost, plus the present value of available funds and reductions in future contributions to the plan.

For the defined contribution scheme, the cost recognised for the period is the contribution payable in exchange for services rendered by employees during the period

1.19 Foreign�currenciesSterling is the presentational currency of CIMA. Transactions in currencies other than sterling are initially recorded at the rates of exchange prevailing on the dates of the transactions. Surpluses and deficits arising on exchange are included in the net surplus or deficit for the period. Monetary assets and liabilities are translated at the rates prevailing on the balance sheet date, including non-UK operations. On consolidation the income and expense items of the non-UK operations are translated at the average rates for the period. Exchange differences on the translation of the assets and liabilities of the non-UK operations have been taken to the foreign currency translation reserve.

1.20 DerivativesCIMA uses derivative financial instruments (derivatives) to hedge its exposure to foreign exchange risks arising from operational activities.

Derivatives are recognised at fair value. As the financial instruments are designated as fair value through profit and loss, the gain or loss on re-measurement to fair value is recognised immediately in the consolidated statement of comprehensive income.

1.21 ProvisionsProvisions have been set aside for costs to complete open disciplinary cases with members and to remedy dilapidation lease obligations.

1.22 Sources�of�estimation�and�uncertaintyThe preparation of the financial statements requires CIMA to make estimates, judgements and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosure of contingent assets and liabilities. CIMA bases its estimates on historical experience and various other assumptions that they believe are reasonable under the circumstances, the results of which form the basis for making judgements about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from those estimates under different assumptions or conditions.

1.23 Significant�judgementsCIMA believes that the primary areas in the application of its accounting policies is its defined benefit pension scheme assumptions, which are set out in Note 14 and consolidating the Association UK from 1 January 2018, rather than 29 November 2018. CIMA was deemed to be in control as it was responsible for funding the Association UK throughout the year.

The other significant judgement is the carrying value of properties and provisions.

1.24 FundsCIMA maintains a level of reserves to protect against a shortfall in income should economic or market forces cause a significant decline in demand for its products and services for one year, or to its ability to earn a return on its invested funds. Most investment projects are funded out of current income, however accumulated reserves may be used to fund significant strategic projects.

Fair value reserves represent the market value of CIMA’s investments and property in excess of the historic cost. The foreign currency translation reserve represents exchange differences arising on the translation of the assets and liabilities of the non-UK operations. Charitable trust reserves represent the total reserves relating to the Benevolent Fund and the Anthony Howitt Lecture Trust.

While the accumulated funds are negative in both 2019 and 2018, primarily driven by the pension valuation assumptions, CIMA’s business model remains strong and relevant to the market, with a membership population underpinned by high retention levels generating sustainable future income. The organisation is committed to standing behind the pension scheme and an agreed plan is in place to support and manage this over the coming years. In addition to this, the combined resources of the Association will provide a stronger platform for the delivery of the management accounting strategy to grow the membership pipeline.


2. Changes in accounting policies

The date of initial application of IFRS 16 for CIMA is 1 January 2019. CIMA applied IFRS 16 using the modified retrospective approach, under which the comparative information is not restated, and the cumulative effect of initial application is recognized in retained earnings at 1 January 2019.

2.1 Definition�of�a�leasePreviously, CIMA determined at contract inception whether an arrangement is or contains a lease under IFRIC4. Under IFRS 16, CIMA assesses whether a contract is or contains a lease based on the definition of a lease, as explained in Note 1.8 Leases.

On transition to IFRS 16, CIMA elected to apply the practical expedient to grandfather the assessment of which transactions are leases. It applied IFRS 16 only to contracts that were previously identified as leases. Contracts that were not identified as leases under IAS 17 and IFRIC 4 were not reassessed for whether there is a lease. Therefore, the definition of a lease under IFRS 16 was only applied to contracts entered into or changed on or after 1 January 2019.

2.2 As�a�lesseeAs a lessee, CIMA previously classified leases as operating or finance leases based on its assessment of whether the lease transferred significantly all of the risks and rewards incidental to ownership of the underlying asset to CIMA. IFRS 16 changes how CIMA accounts for leases previously classified as operating leases under IAS 17, which were off-balance-sheet.

Under IFRS 16, CIMA recognizes right-of-use assets and lease liabilities for most leases in the statement of financial position (initially measured at the present value of future lease payments); CIMA recognises depreciation of right-of-use assets and interest on lease liabilities in the statement of profit or loss; and separates the total amount of cash paid into a principal portion (presented with financing activities) and interest (presented within operating activities) in the statement of cash flows.

CIMA applies recognition exemption to short-term leases and low-value leases of IT equipment (see note 1.18 Leases). For leases of other assets, which were classified as operating leases under IAS 17, CIMA recognised right-of-use assets and lease liabilities.

At transition, lease liabilities were measured at the present value of the remaining lease payments, discounted at CIMA’s incremental borrowing rate as at 1 January 2019. Right-of-use assets are measured at an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments or incentive received.

2.3 Impacts�on�financial�statementsOn transition to IFRS 16, CIMA recognised an additional £13.8m of a right-of-use asset (net of Accumulated Depreciation and £15.6m of lease liabilities, the difference primarily being the leasehold incentive received. When measuring lease liabilities, CIMA discounted lease payments using its incremental borrowing rate at the lease commencement date.

The right-of-use assets are included in “Right-of-use assets” in the statement of financial position.

2019

£’000

Right-of-use assets, except for investment property 13,759

CIMA�leases�office�buildings.�Information�about�the�leases�for�which�CIMA�is�a�lessee�are�presented�below.

Right-of-use�assets

Property

£’000

Balance at 1 January 15,144

Depreciation charge for the year (1,385)

Balance at 31 December 13,759


The lease liabilities are included in “Lease liabilities” in the statement of financial position. CIMA applies IFRS 7 Financial Instruments: Disclosures (paragraph 39) for maturity analysis of lease liabilities, which requires to disclose the remaining contractual maturities. CIMA does not face significant liquidity risk with regard to its lease liabilities.

Lease�liabilities

2019

£’000

Maturity analysis-contractual undiscounted cash flows

Less than one year 2,365

One to five years 8,740

More than five years 12,057

Total undiscounted lease liabilities at 31 December 23,162

Current 1,211

Non-current 14,384

Lease liabilities included in the statement of financial position at 31 December 15,595

The�below�table�shows�the�profit/(loss)�recognised�by�the�application�of�IFRS�16�for�the�current�year.

Amounts�recognised�in�profit/(loss)

2019

£’000

Interest on lease liabilities (798)

Expenses relating to short-term leases (6)

Expenses relating to leases of low-value assets, excluding short-term leases of low-value assets (55)


The�below�table�shows�the�impacts�on�the�cash�flows�by�the�application�of�IFRS�16�for�the�current�year.

Amounts�recognised�in�the�statement�of�cash�flows

2019

£’000

Repayment of leasing liabilities – financing activities 1,153

Interest payments – operating activities 781

Total cash outflow for leases 1,934

At�the�reporting�end�date�31�December�2018,�the�company�had�outstanding�commitments�for�future�minimum�lease�payments�under�non-cancellable�operating�leases,�which�fall�due�as�follows:�

2018

£’000

Within one year 1,881

Between two and five years 7,428

In over five year 13,611

22,920

The�lease�commitment�for�the�Helicon�is�10�years�to�September�2024,�pending�a�rent�review.�


3. Restatement — Reclass of 2018 Income and Expenditure

CIMA is presenting the Consolidated statement of comprehensive income by income categories and functional expenses. This presentation aligns with management reporting for the Association US and improves the understanding of the financial statements.

There was no impact to the statement of financial position and the statement of changes in funds from this change in presentation.

We�summarise�the�impact�on�the�Consolidated�statement�of�comprehensive�income�below:

2018 as originally stated

Adjustments 2018 as restated

£’000 £’000 £’000

Income 55,416 (1,488) 53,928

Income adjustments

Reclassify loss on foreign exchange (664)

Reclassify pension interest income (1,070)

Reclassify gain on intangible disposal 101

Reclassify cost of sales promotions 145

Total income adjustments (1,488)

Expenditure (59,191) 1,438 (57,753)

Expenditure adjustments

Reclassify loss on foreign exchange 664

Reclassify pension interest income 1,070

Reclassify gain on intangible disposal (101)

Reclassify cost of sales promotions (145)

Reclassify charity expenses (50)

Total expenditure adjustments 1,438

Operating (deficit) before charitable trusts and other funds (3,775) (50) (3,825)


We�summarise�the�impact�on�the�Consolidated�statement�of�cash�flows�below:�

2018 as originally stated

Adjustments 2018 as restated

£’000 £’000 £’000

Cash flows from operating activities

Member and student income 52,390 4,279 56,669

Other income/(loss) 3,944 (5,767) (1,823)

Payments to suppliers (30,330) 1,438 (28,892)

Payments related to charities (25) 50 25

Adjustments

Member�and�student�income

Reclassify Promoting competency globally income from other income 4,279

Other�income/(loss)

Reclassify Promoting competency globally income from other income (4,279)

Reclassify cost of sales promotion from income 145

Reclassify loss on foreign exchange from income (664)

Reclassify pension interest from income (1,070)

Reclassify gain on intangible disposal from income 101

(5,767)

Payments�to�suppliers

Reclassify cost of sales promotion from income (145)

Reclassify loss on foreign exchange from income 664

Reclassify pension interest from income 1,070

Reclassify gain on intangible disposal from income (101)

Reclassify charity expenses (50)

1,438

Payments�related�to�charities

Reclassify charity expenses 50


4. Fees paid to external auditors

2019 2018

£’000 £’000

Total Fees

Saffery Champness 310 273

Other providers 166 92

476 365

Audit Services

Audit of CIMA Group Entities 174 129

Non-UK 93 73

267 202

Other Services

Corporation tax 23 20

Other – advisory services 163 124

Non-UK 23 19

209 163

Total Fees 476 365

Other Entities outside of group – not incorporated into group disclosures

CIMA General Charitable Trust 6 6

Pension scheme Audit 11 12

17 18

Saffery�Champness�provided�audit,�assurance,�tax�and�advisory�services�in�the�UK,�and�to�some�non-UK�offices.� The�fees�include�irrecoverable�VAT.

5. Employees

2019 2018

£’000 £’000

Salaries and wages 16,892 17,028

Pension costs 1,852 1,729

Social Security 1,361 1,425

20,105 20,182

As referenced in note 1, all employees of CIMA were transferred to the Association UK on 1 January 2017. In 2018, CIMA was granted majority control of the Association UK. The average monthly number of persons (including directors) employed by CIMA during the period was 411 in 2019 and 403 in 2018.


2019 2018

£’000 £’000

Current tax

UK corporation tax 40

Overseas corporation tax 28

Adjustment in respect of prior periods 10

Current tax payable on deficit for the year 2018 – 47

Total current tax 78 47

Total tax charge per consolidated statement of comprehensive

Income 78 47

6.1 Tax charge for the year

6. Taxation

2019 2018

£’000 £’000

Gain/(deficit) on ordinary activities before tax 246 (3,800)

Tax on gain/(deficit) on ordinary activities at the standard UK rate of 19% (2018: 18.80%) 31 (715)

Effects of:

Fixed asset differences 42 –

Adjustment to tax charge in respect of previous periods 7 –

Adjustment for non-deductible capital allowances 513 –

Net income not taxable (938) 426

Expenses not deductible 519 37

Deferred tax not recognised (36) 299

Other differences (60) –

78 47

6.2 Factors affecting the tax charge for the year

No tax liabilities arise under the activities of the charitable trusts.


7. Property, plant and equipment

Freehold land and building (at valuation)

Leasehold land and building (at valuation)

Leasehold improvements (at cost)

Furniture, fixtures and other equipment (at cost)

Total

£’000 £’000 £’000 £’000 £’000

Net book value at 31 December 2017 978 234 102 704 2,018

Cost or valuation

At 1 January 2018 1,024 304 435 2,850 4,613

Revaluation 273 – – – 273

Additions – – 70 82 152

Acquisition – – 3,660 – 3,660

Disposals – – (101) (8) (109)

Foreign exchange – – 75 (96) (21)

At 31 December 2018 1,297 304 4,139 2,828 8,568

Accumulated depreciation

At 1 January 2018 (46) (70) (333) (2,146) (2,595)

Charge for the year (20) – (93) (336) (449)

Acquisition – – (1,096) – (1,096)

Eliminated on disposals – – 52 8 60

Foreign exchange – – (47) 57 10

At 31 December 2018 (66) (70) (1,517) (2,417) (4,070)

Net book value at 31 December 2018 1,231 234 2,622 411 4,498

Cost or valuation

At 1 January 2019 1,297 304 4,139 2,828 8,568

Additions – – 297 1,017 1,314

Disposals – – (57) (20) (77)

Foreign exchange – – (86) 62 (24)

At 31 December 2019 1,297 304 4,293 3,887 9,781

Accumulated depreciation

At 1 January 2019 (66) (70) (1,517) (2,417) (4,070)

Charge for the year (30) – (286) (330) (646)

Eliminated on disposals – – 57 24 81

Foreign exchange – – 70 (57) 13

At 31 December 2019 (96) (70) (1,676) (2,780) (4,622)

Net book value at 31 December 2019 1,201 234 2,617 1,107 5,159


8. Intangible assetsComputer software Trademarks Total

£’000 £’000 £’000

Net book value at 31 December 2017 5,334 993 6,327

Cost

At 1 January 2018 14,498 1,368 15,866

Additions 1,184 40 1,224

Disposals – – –

At 31 December 2018 15,682 1,408 17,090

Accumulated amortisation

At 1 January 2018 (9,164) (375) (9,539)

Charge for the year (1,832) (209) (2,041)

Eliminated on disposals – – –

Foreign exchange 1 – 1

At 31 December 2018 (10,995) (584) (11,579)


Cost

At 1 January 2019 15,682 1,408 17,090

Additions 548 70 618

Disposals (23) – (23)

Foreign exchange (1) – (1)

At 31 December 2019 16,206 1,478 17,684

Accumulated amortisation

At 1 January 2019 (10,995) (584) (11,579)

Charge for the year (2,294) (145) (2,439)

Eliminated on disposals (160) – (160)

Foreign exchange 1 – 1

At 31 December 2019 (13,448) (729) (14,177)


Freehold and leasehold land and buildings relates to property in Sri Lanka. Leasehold improvements include the corporate centre offices in the Helicon building, London, which were transferred to the Association UK during 2017, and also non-UK offices. In 2018, CIMA was granted control of the Association UK, and assets are shown as acquired in 2018.

The valuation of the freehold and leasehold land and building in Sri Lanka was prepared by an independent valuation expert on the basis of depreciated replacement cost during January 2019. The valuation segregates the respective values of the freehold and leasehold land and buildings.

On a historical cost basis, the revalued freehold and leasehold land and buildings in Sri Lanka would have been included at a cost of £670K less accumulated depreciation of £326K.

Included above are assets under construction at a cost of £201K (2018: £1,521K). As these are assets under construction, depreciation has not started yet.


9. Interest in other investments

Investment in associate Marketable securities

Held by CIMA Held by CIMA Held by charitable trusts and other funds

Total

£’000 £’000 £’000 £’000

At 31 December 2017 at fair value 441 2,362 2,659 5,462

At 1 January 2018 at fair value 441 2,362 2,659 5,462

Acquisition (441) – – (441)

Unrealised loss on revaluation of listed investments

– (107) (212) (319)

At 31 December 2018 at fair value – 2,255 2,447 4,702

Historical cost – 1,080 2,015 3,095

At 1 January 2019 at fair value – 2,255 2,447 4,702

Acquisition – 80 – 80

Unrealised gain on revaluation of listed investments

– 462 187 649

At 31 December 2019 at fair value – 2,797 2,634 5,431

Historical cost 1,176 2,015 3,191

The investment in associate in 2017 represented CIMA’s investment in the Association UK. In 2018 CIMA was granted majority control of the Association UK and has become a subsidiary as set out in Note 16. CIMA also has a 50% interest in the Association US which has no cost value, as set out in note 16.1.

Marketable securities comprise units in funds managed by Schroder and Co. Limited. These funds are revalued at the balance sheet date to market quoted prices. Investments are classified as non-current unless they are expected to be realised within one year.

2019 2018

£’000 £’000

The unit funds are invested in the following asset classes

Equities 3,276 2,712

Multi-asset funds 2,155 1,990

5,431 4,702

The unit funds are invested in the following currencies

Sterling 2,634 2,447

US Dollar 2,797 2,255

5,431 4,702


10. Current assetsThe Council considers that the carrying amounts of these assets is approximate to their fair values.

Trade and other receivables are recognized at amortized costs.

The average credit period taken on trade receivables is 28 days (2018: 37 days).

2019 2018

£’000 £’000

Trade receivables 2,637 2,761

Prepayments 1,419 972

Other receivables 232 434

4,288 4,167

2019 2018

£’000 £’000

Cash in hand and at bank 10,936 6,694

Credit card receipts in transit 3,814 4,590

14,750 11,284

10.1 Trade and other receivables comprise:

10.2 Cash and cash equivalents comprise:

The related party payables consist of amounts due to the regional offices that are not eliminated on consolidation and amounts due to the Association US.

11. Trade and other payables

2019 2018

£’000 £’000

Trade payables and accruals 3,890 5,142

Corporation tax payable 33 26

Related party payable 2,261 3,432

Other taxes and social security costs 466 215

6,650 8,815


Of the provisions held at year-end £296K (2018: £294K) is current and £498K is non-current (2018: £480K) and consists of dilapidations.

This represents subscriptions and fees received. They are treated as deferred income and will be released to the statement of comprehensive income in line with when the performance obligation is met (note 1.5).

CIMA sponsors The Chartered Institute of Management Accountants Pension and Assurance Scheme (the ‘Scheme’), a funded defined benefit pension scheme in the UK. The Scheme is administered within a trust, which is legally separate from CIMA. Trustees are appointed by both CIMA and the Scheme’s membership and act in the interest of the scheme and all relevant stakeholders, including the members and CIMA. The Trustees are also responsible for the investment of the Scheme’s assets.

This Scheme provides pensions and lump sums to members on retirement and to their dependents on death. Members who leave service before retirement are entitled to a deferred pension. The Scheme closed to new members in 2002, and to accrual of benefits in 2012.

The responsibility for making good any deficit within the Scheme lies with CIMA and this introduces a number of risks for CIMA. The major risks are: interest rate risk, inflation risk, investment risk, and longevity risk. CIMA and the Trustees are aware of these risks and manage them through appropriate investment and funding strategies. The Trustees manage governance and operational risks through a number of internal control policies, including a risk register.

The Scheme is subject to regular actuarial valuations, which are usually carried out every three years. An actuarial valuation was carried out at 1 April 2018. These actuarial valuations are carried out in accordance with the requirements of the Pensions Act 2004 and so include deliberate margins for prudence. This contrasts with these accounting disclosures, which are determined using best estimate assumptions.

Following the 2018 valuation, CIMA and the Scheme agreed a plan to reduce the liability to zero by 2027. This is through additional contributions from CIMA and expected investment returns on the Scheme’s assets. In the current year CIMA’s contributions amounted to £1,082K (2018: £1,061K).

The results of the formal actuarial valuation as at 1 April 2018 have been projected to 31 December 2019 by a qualified independent actuary. The figures in the following disclosures were measured using the Projected Unit Method.

While CIMA and AICPA created the Association UK and US to align strategy, management and operations as explained in Note 1, the Scheme will remain in CIMA and will have first call on membership and student subscription income to ensure it can continue to meet its obligations. This has been fully agreed between the Scheme Trustees and the Council.

12. Provisions

13. Subscriptions and fees received in advance

14. Retirement benefits

Dilapidations Other Total

£’000 £’000 £’000

At 31 December 2017 – 245 245

Utilised – (144) (144)

Released – (101) (101)

Increase costs of ongoing provisions – 101 101

Provided – 193 193

Acquired with Association UK 480 – 480

At 31 December 2018 480 294 774

Utilised – (237) (237)

Released – (57) (57)

Increase costs of ongoing provisions – 42 42

Provided 18 254 272

At 31 December 2019 498 296 794


2019 2018

£’000 £’000

Present value of Scheme liabilities (62,769) (54,545)

Fair value of Scheme assets 47,181 41,704

Net amount recognised at year end (15,588) (12,841)

14.1 Amounts recognised in the consolidated balance sheet

14.2 Amounts recognised in the consolidated statement of comprehensive income

All Scheme assets are valued at a quoted market place.

The current and past service costs, settlements and curtailments, together with the net interest expense for the year are included in the employee benefits expense in the consolidated statement of comprehensive income. Remeasurements of the net defined benefit liability are included in other comprehensive income.

2019 2018

£’000 £’000

Service cost

Past service cost and loss on settlements and curtailments – 164

Administration expenses 341 352

Net interest expense 356 362

Charge recognised in the consolidated statement of comprehensive income 697 878

Remeasurements of the net liability

(Gain)/loss on Scheme assets (excluding amount included in Interest expense) (4,592) 1,867

(Gain)/loss arising from changes in financial assumptions 6,605 (3,700)

(Gain)/loss arising from changes in demographic assumptions 864 (937)

Experience loss 255 1,024

(Gain)/loss recorded in other comprehensive income 3,132 (1,746)

Total defined benefit expense/(gain) 3,829 (868)


14.3 The principal actuarial assumptions used

The choice of assumptions is the responsibility of the Council, and they are agreed with the actuary. The assumptions chosen are the most appropriate estimates from a range of possible actuarial assumptions, which due to the timescale covered, may not necessarily be borne out in practice.

2019 2018

% %

Liability discount rate 2.05 2.85

Inflation assumption RPI 3.10 3.40

Inflation assumption CPI 2.30 2.40

Revaluation of deferred pensions:

In service deferreds 3.10 3.40

Deferreds 2.30 2.40

Increases for pensions in payment:

Benefits accrued prior to 1 April 2004 3.40 3.60

Benefits accrued after 1 April 2004 3.10 3.35

Proportion of employees commuting pension for cash All members commute 20% of their pension at

retirement on a fixed commutation factor of 17

All members commute 2.25 times their pension at retirement on a fixed

commutation factor of 15

Mortality assumption — pre-retirement S2PA series light tables adjusted 93% for males

and 92% for females, CMI 2018 (long-term trend of 1.00% and IAMI of .5%)

Light SAPS S2PxA CMI 2017

(long term trend of 1.25%)

Mortality assumption — male post-retirement S2PA series light tables adjusted 93% for males




Mortality assumption — female post-retirement S2PA series light tables adjusted 93% for males




Future expected lifetime of current pensioner age 65

Male aged 65 at year-end 88.50 88.10

Female age 65 at year-end 89.60 89.20

Future expected lifetime of future pensioner at age 65

Male aged 45 at year-end 89.50 89.50

Female age 45 at year-end 90.80 90.70


14.4 Reconciliation of Scheme assets and liabilities

Liabilities Assets Total

£’000 £’000 £’000

At 1 January 2018 (57,839) 43,069 (14,770)

Interest income / (expense) (1,432) 1,070 (362)

Administration expenses – (352) (352)

Past service cost (GMP equalization) (164) – (164)

Cost recognised in the statement of comprehensive income

(1,596) 718 (878)

Actuarial losses arising in changes in financial assumptions

3,700 – 3,700

Actuarial gains arising in changes in demographic assumptions

937 – 937

Other experience items (1,024) – (1,024)

Return on assets (excluding amount included in net interest expense)

– (1,867) (1,867)

Remeasurement effects recognised in other comprehensive income

3,613 (1,867) 1,746

Contributions from CIMA – 1,061 1,061

Benefits paid 1,277 (1,277) –

Net cash 1,277 (216) 1,061

At 31 December 2018 (54,545) 41,704 (12,841)

Interest income / (expense) (1,540) 1,184 (356)

Administration expenses – (341) (341)

Cost recognised in the statement of comprehensive income

(1,540) 843 (697)

Actuarial (loss) arising in changes in financial assumptions

(6,605) – (6,605)

Actuarial (loss) arising in changes in demographic assumptions

(864) – (864)

Other experience items (255) – (255)

Return on assets (excluding amount included in net interest expense)

– 4,592 4,592

Remeasurement effects recognised in other comprehensive income

(7,724) 4,592 (3,132)

Contributions from CIMA – 1,082 1,082

Benefits paid 1,040 (1,040) –

Net cash 1,040 42 1,082

At 31 December 2019 (62,769) 47,181 (15,588)


14.5 Split of the Scheme’s liabilities by category of membership

14.6 The major categories of Scheme assets are as follows

2019 2018

£’000 £’000

In-service deferred members 16,797 14,106

Deferred pensioners 24,079 19,872

Pensions in payment 21,893 20,567

62,769 54,545

Average duration of the Scheme’s liabilities at the end of the year 20 years 19 years

2019 2018

£’000 £’000

Return seeking

Non-UK equities 12,362 10,699

Diversified growth funds 7,913 7,099

Alternatives 14,224 13,160

Total return seeking 34,499 30,958

Debt instruments

LDI 9,687 8,045

Total debt instruments 9,687 8,045

Other

Property 2,779 2,631

Cash 216 70

Total other 2,995 2,701

Total market value of assets 47,181 41,704

The Scheme has no investments in CIMA or in property occupied by CIMA.


14.7�Sensitivity�of�the�liability�value�to�changes�in�the�principal�assumptions�If the discount rate was 0.1% higher (lower), the Scheme liabilities would decrease by £1,223K (increase by £1,258K), if all the other assumptions remained unchanged.

If the inflation assumption was 0.1% higher (lower), the Scheme liabilities would increase by £896K (decrease by £857K). In this calculation all assumptions related to the inflation assumption have been appropriately adjusted, that deferred pension, and pension in payment increases. The other assumptions remain unchanged.

If life expectancies were to increase (decrease) by one year, the Scheme liabilities would increase by £2,816K (decrease by £2,904K), if all the other assumptions remained unchanged.

If members were assumed not to commute any pension for cash at retirement, the Scheme liabilities would increase by £4,362K, if all the other assumptions remained unchanged.

These sensitivities have been calculated to show the movement in the Scheme in isolation, and assuming no other changes in market conditions at the accounting date. This is unlikely in practice, for example, a change in discount rate is unlikely to occur without any movement in the value of the assets held by the Scheme.

14.8�Other�retirement�obligationsA provision of £51K has been made in the CIMA Sri Lanka entity for retirement gratuities in conformity with SLAS 16/Gratuity Act No. 12 of 1983 for all employees who have completed one year of service and is recognised as an expense in the period during which their services are rendered in accordance with SLAS 16.


The total gross contractual undiscounted cash flows of financial liabilities fall due as follows.

31 December 2018On demand or within 1 year 1–2 years 2–5 years More than

5 years Total

£’000 £’000 £’000 £’000 £’000

Trade and other payables (8,815) – – – (8,815)

Provisions (294) – – (480) (774)

(9,109) – – (480) (9,589)

31 December 2019 On demand or within 1 year 1-2 years 2-5 years More than

5 years Total

£’000 £’000 £’000 £’000 £’000

Trade and other payables (9,560) – – – (9,560)

Provisions (296) – – (498) (794)

(9,856) – – (498) (10,354)

CIMA’s principal financial instruments comprise marketable securities and charitable trusts and other funds. The main purpose of these financial instruments is to raise finance for the Group’s operations including the operations of its controlled charities. The Group has various other financial instruments such as trade receivables, trade payables and accruals that arise directly from its operations. Foreign currency exchange contracts are further discussed in section 15.1.2 below. The main financial risks for the Group are credit risk, liquidity risk, currency risk and investment risk.

15.1 Risks

15.1.1 Credit riskThe risk on cash balances, deposits and available for sale investments is managed in a risk averse manner, being held with UK clearing banks with a credit rating of at least A. A maximum of £5m may be invested per bank. The trade credit risk is mainly attributable to subscription and exam fee income. There is no concentration of risk in this area, as income is diversified over a large number of members and students.

15.1.2 Currency riskCIMA operates in a number of countries, has trade commitments in a number of currencies and, therefore, has some exposure to currency movements. Income is largely sterling-denominated, while non-sterling expenditure accounts for 4% of total expenditure. CIMA continues to review currency risk on a regular basis and will take action to hedge risk as appropriate. See note 15.4 for a summary of hedges in place at the year end.

15.1.3 Investment riskInvestment income, including gains on disposals, increased by £62K from £117K to £179K. Budgets are prepared on a prudent basis and income from investments is not relied on for CIMA’s ongoing activities. Investments are reviewed on a regular basis. A 10% increase in fair value at year-end would result in a rise of £543K in the value of investments and a corresponding rise in the fair value reserve; a decrease of 10% would result in a fall of £543K in the value of investments, and a corresponding fall in the fair value reserve.

15.1.4 Liquidity riskCIMA’s business model, with subscription fees falling due on 1 January and examination fees being due before exam event commitments are made, results in working capital requirements being fully funded in advance. This results in a high proportion of CIMA’s asset base being cash on deposit. These deposits are actively managed to ensure that working capital requirements are met at all times.

15. Financial instruments


15.2 Summary of financial instruments

31 December 2018 Loans and receivables Loans at amortised cost Available for sale assets Total

£’000 £’000 £’000 £’000

Assets

Noncurrent

Marketable securities – – 2,255 2,255

Charitable trust funds – – 2,447 2,447

Investment in associate – – – –

Total – – 4,702 4,702

Current

Marketable securities – – – –

Trade and other receivables 4,167 – – 4,167

Cash and cash equivalents 11,284 – – 11,284

Total 15,451 – – 15,451

Liabilities

Current

Trade and other payables – (8,815) – (8,815)

Provisions – (294) – (294)

Total – (9,109) – (9,109)

Non-current

Provisions – – – –

Total – – – –

Net financial assets/ (liabilities) 15,451 (9,109) 4,702 11,044


31 December 2019 Loans and receivables Loans at amortised cost Available for sale assets Total

£’000 £’000 £’000 £’000

Assets

Noncurrent 2,797 2,797


Charitable trust funds – – 2,634 2,634

Total – – 5,431 5,431

Current


Trade and other receivables 4,288 – – 4,288

Cash and cash equivalents 14,750 – – 14,750

Total 19,038 – – 19,038

Liabilities

Current

Trade and other payables – (9,560) – (9,560)

Provisions – (296) – (296)

Total – (9,856) – (9,856)

Non-current

Provisions – – – –

Total – – – –

Net financial assets/ (liabilities) 19,038 (9,856) 5,431 14,613

15.3 Fair value hierarchy

Level 1: The fair value of financial instruments traded in active markets is based on the quoted bid price at the reporting date.

Level 2: The fair value of financial instruments not traded in an active market is determined using observable market data for all significant inputs.

Level 3: The fair value of financial instruments not traded in an active market where at least one significant input cannot be determined using observable market data; this includes unlisted equity securities.

Available for sale financial assets are carried at fair value. Marketable securities and charitable trusts are classified as a level 1 fair value measurement for disclosure purposes, as the fair value is determined based on quote prices in active markets for identical assets. The carrying value of all other assets and liabilities approximates fair value.


15.4 DerivativesCIMA took out foreign exchange contracts in 2019 and 2018 to mitigate against potential losses on some grant expenditure to be paid out to non-UK offices; CIMA continues to review currency requirements and exchange risk on an ongoing basis.

2019 2018

£’000 £’000

Value of derivatives at deal rate (6,608) (197)

Value of derivatives at year-end spot rate 6,603 205

(Loss)/gain recognised in the consolidated statement of comprehensive Income (5) 8

Name Country of incorporation Principal activity

CIMA ownership/control

American Institute of Certified Public Accountants US Voluntary profession membership organisation primarily representing public and management accountants in the United States of America.

0%

Association of International Certified Professional Accountants

US CIMA and AICPA are founding members and the Associations mission and vision is to be the most influential body of professional accountants driving a dynamic accounting profession worldwide

50%

Association of International Certified Professional Accountants, UK

UK Cost-sharing group providing services for CIMA

51%

CIMA Enterprises Limited UK Business services support 100%

The Chartered Institute of Management Accountants Benevolent Fund

UK To provide assistance to members and ex-members, and their families, in times of hardship

100%

The Anthony Howitt Lecture trust UK To advance education in accountancy and related subjects.

100%

CIMA Australasia Limited Australia Membership services 100%

Chartered Institute of Management Accountants Bangladesh branch

Bangladesh Membership services 100%

CIMA China Co Limited China Membership services 100%

The Chartered Institute of Management Accountants Hong Kong Membership services 100%

Chartered Institute of Management Accountants Republic of Ireland Division

Ireland Membership services 100%

CIMA SE Asia Sdn Bhd Malaysia Membership services 100%

16. Related parties16.1 The group financial statements consolidate the accounts of CIMA, its wholly owned subsidiary undertakings, and the charitable trusts and other funds under the control of CIMA listed below. These financial statements exclude all balances and transactions that are eliminated on consolidation. CIMA maintains branch and other representative offices in a number of countries which are not listed below as they are not material to the group financial statements.


16.2 AssociatesAs per note 1.1, CIMA and the American Institute of Certified Public Accountants (the “AICPA”) created two new entities, the Association of International Certified Professional Accountants — UK, (the ‘Association UK’) and the Association of International Certified Professional Accountants (the ‘Association US’). The Association UK and US both launched on 1 January 2017, for which its purpose is to align strategy, management and operations, and to deliver on its mission and vision to create the most influential body of professional accountants driving a dynamic accounting profession worldwide.

During 2018, CIMA was granted majority control of the Association UK and it became a subsidiary of the group that is consolidated.

16.3��Dormant�companiesCIMA holds 100% of the 100 issued £1 ordinary shares of The Corporate Society of Financial Management Limited, 100% of the two issued £1 ordinary shares of The Institute of Cost and Works Accountants Limited, 100% of the one issued £1 ordinary share in CGMA Limited, and 100% of the 100 £1 issued ordinary shares of Global Professional Accountants in Business Limited, Professional Accountants in Business Limited, Management Accountants in Business Limited, Global Management Accountants in Business Limited and CIMA China Limited. All these companies were dormant in the periods covered by these financial statements.

16.4��General�Charitable�TrustThe General Charitable Trust (GCT) is a registered charity formed for the advancement of education in the subjects of accounting, management accounting, electronic data processing, costing, auditing, taxation, applied economics, finance, and other related subjects of an educational nature.

During the year CIMA made gift aid donations of £95k (2018: £0k) to the GCT. CIMA also provided support services with a notional value of £67k (2018: £80k). At the end of the year the net assets of the GCT were £109k (2018: £74k), which included £0k (2018: £0k) payable to CIMA.

Name Country of incorporation Principal activity CIMA ownership/control

The Chartered Institute of Management Accountants

Dubai Membership services 100%

CIMA Singapore Pte Limited Singapore Membership services 100%

The Chartered Institute of Management Accountants NPC

South Africa Membership services 100%

The Chartered Institute of Management Accountants Sri Lanka

Sri Lanka Membership services 100%

17. Subsequent eventsCIMA has evaluated events and transactions for potential recognition or disclosure through to 8 April 2020, which is the date the consolidated financial statements were approved. Subsequent to 31 December 2019, investments have been adversely impacted by the market volatility related to COVID-19 and an unrealized loss of approximately £900k has been sustained. Furthermore, the defined benefit pension scheme sponsored by CIMA will be affected by the recent market volatility and the declining interest rate environment around the world. Management continues to monitor the potential impact to net assets these events may have in Fiscal 2020. These are non-adjusting events and have not been reflected in the balance sheet or income and expenditure account.


Meetings attended by members of CIMA’s Council

Name Electoral Constituency Council

Ash P vp 5/5

Baldwin J 5 4/5

Barr P 8 4/5

Beedham R 6 5/5

Bennett R 19 3/5

Bittlestone S co 4/5

Boffey A 6 3/5

Bragg K 3 4/5

Brown J 5 5/5

Chan F 16 5/5

Connaughton L 9 5/5

Cottam J 6 3/5

Davies N 2 4/5

Davison N 5 5/5

Donaldson G co 2/5

Don-Perriot Y D 10 5/5

Edirisinghe R + 14 1/3

Ellison-Taylor K + AICPA 2/3

Essayah K 12 4/5

Freeman S (nee Aggarwal)

3 1/1

Fitzgerald L + co 1/3

Ghosh S 11 4/5

Goddard A 15 4/5

Graham J 6 4/5

Griffiths D AICPA 3/5

Hans A 1 5/5

Hansen E *** AICPA 0/2

Hurst S + co 2/3

Jackson N dp 5/5

Jessett N 4 5/5

Johnson D 2 5/5

Kakad B 4 3/5

Kanaka M co 4/5

Name Electoral Constituency Council

Karkaria P + co 2/3

Lowney M 3 5/5

Luk A *** co 2/2

Lynch D 11 5/5

Macnab A co 4/5

McGunnigle A 3 3/5

Mehta A *** AICPA 2/2

Milne S ** 7 4/5

Mistry H 4 5/5

Muchhala M 1 4/5

Naseer I K co 5/5

Niswander R + AICPA 3/3

O’ Brien L co 4/5

Owen J 1 3/5

Parker H + 17 2/3

Perera S *** 14 2/2

Ratnayake A p 5/5

Richardson E M 2 5/5

Roosa D AICPA 5/5

Saxton M 18 5/5

Sharp R 11 5/5

Singh V *** co 2/2

Smith H 7 5/5

Stanford D pp + 3/3

Stapleford S + 3 3/3

Stephen K *** co 2/2

Swientozielskyj S ipp

4/5

Taylor L + 12 2/3

Watson J 12 2/5

Wayment S *** 11 0/2

Wilhelmij P *** 17 2/2

Zheng J co 5/5


Institute Secretary

Secretary General Gail Stirling s

CIMA Electoral Constituency

Central London & North Thames 1

South West England & South Wales

2

East Midlands & East Anglia 3

West Midlands 4

North East England 5

North West England & North Wales

6

Scotland 7

Northern Ireland 8

Republic of Ireland 9

East, West Central & Southern Africa

10

Central Southern England 11

South East England 12

South Asia 14

North Asia 15

South East Asia 16

Europe, North Africa & Middle East

17

The Americas 18

Australasia 19

Key Electoral Constituency

p President

dp Deputy President

vp Vice President

pp Past President

ipp Immediate Past President

co Co-opted

nc Non-CIMA Member

* Non Council Member

** Appointment effective from 16 January 2019

*** Appointment effective from from AGM 2019

**** Appointment effective from from 31 July 2019

+ Left Council at AGM 2019

s CIMA Staff Member

Honorary Officers

President Amal Ratnayake

Deputy President Nick Jackson

Vice President Paul Ash

Immediate Past President Steven Swientozielskyj


CIMA’s Council and Committee members

Appointments Committee

Chairman

Secretary

Steven Swientozielskyj ipp

David Stanford*

Amal Ratnayake p

Nick Jackson dp

Paul Ash vp

Francis Chan

Michael Lowney

Debbie Don-Pierrot

Baljeet Basra s

Professional Standards Committee

Chairman

Vice Chairman

Secretary

Melanie Kanaka

Nigel Davies

Joe Anichebe*

Anna Corry *

Kelly Essayah

Nigel Iyer*

Karen Newbury*

Juliet Oliver*

Maryvonne Palanduz *

Gary Thickett *

Ian Todd *

Allison Walker *

Nicole Ziman *

Gail Stirling s

Membership Committee

Chairman

Vice Chairman

Secretary

Bob Beedham

Bina Kakad

Mike Agate*

Janet Brown

Nic Davison

Aidan Goddard

Iain Haggis *

Nick Jessett

Phillie Karkaria*

Imran Khalil Naseer

Keren Stephen

Mirella Zhang*

Baljeet Basra s


Other committees, boards and trusts

Benevolent Fund Committee

Chairman

Vice Chairman

Secretary

Mustafa Muchhala

Vacancy Derek Barnes*David JohnsonDavid LynchAmbrose Kealy *Jeff Keye*Matt Miller*Hasmukh MistryLouise O’BrienRona Van Hoepen*Janette WatsonMagdalenda Wereda-Kolasinka*

Caroline Aldred s

CIMA Enterprises Ltd (CEL)Director

Director

Company Secretary

Gail Stirling s

CIMA (Corporate Body)

Baljeet Basra s

CIMA China LtdDirector

Director

Company Secretary

Andrew Harding s


TBC s

CGMA (Dormant)Director

Director

Company Secretary

Gail Stirling s


Baljeet Basra s

Corporate Society of Financial Management Ltd (Dormant)Director

Director

Company Secretary

Andrew Harding s


Baljeet Basra s

Institute of Cost and Works Accountants Ltd (Dormant)

Director

Director

Company Secretary

Gail Stirling s


Baljeet Basra s

Professional Accountants in Business Ltd (Dormant)

Director

Director

Company Secretary

Gail Stirling s


Baljeet Basra s

Global Member Engagement Committee

Chairman Vice Chairman

Secretary

Imran Khalil NaseerAmarjeet HansManohari Abeyeskera*Rebecca BennettPatricia Duru* Sinead Dillon*James OwenWojciech WieronskiMartin SaxtonJohn Zheng

Paul Turner s

General Charitable Trust

Chairman

Vice Chairman

Secretary

Glynn Lowth*pp Rod Hill* pp Bob BeedhamIvan Court*Francesca Windsor *Baljeet Basra s

Anthony Howitt Lecture Trust

Chairman

Secretary

Amal Ratnayake pNick Jackson dpPaul Ash vpSteven Swientozielskyj ippBaljeet Basra s

Global Management Accountants in Business Ltd

DirectorDirectorCompany Secretary

Gail Stirling sCIMA (Corporate Body)Baljeet Basra s

Global Professional Accountants in Business Ltd (Dormant)

Director

Director

Company Secretary

Andrew Harding s


Baljeet Basra s

Management Accountants in Business Ltd (Dormant)

Director

Director

Company Secretary

Andrew Harding s


Baljeet Basra s


Independently appointed conduct committees

Investigation Committee

Chairman

Vice Chairman

Vice Chairman

Secretary

Angela Home nc

Graham Humby nc

John Crawley nc

Morounke Akingbola *

Catherine Audcent nc

Paul Brittain *

Elizabeth Corcoran*

Alison Fisher nc

Mike Foster nc

Alison Harvey nc

Cheryl Little *

Alison Lyon nc

Damien O’Kane *

Rob Ward nc

Moussa Zabetti s

Disciplinary Committee

Chairman

Vice Chairman

Vice Chairman

Vice Chairman

Secretary

Rosalind Wright nc

Helen Riley nc

Robin Somerville nc

Judith Way *

Joseph Campbell *

Michael Campbell nc

Paul Carcone *

Gary Dewey *

Angela Loveless nc

Melissa D’Mello nc

Bridget Makins nc

Michael McCulley nc

Sandra Murray *

Pamela Ormerod nc

Jackie Pearce *

Jennifer Quirke *

Suzanne Smith *

Emma Sweeney nc

Stephen Thacker nc

Ian Watts *

Moussa Zabetti s

Appeal Committee

Chairman

Vice Chairman

Secretary

Catrin Davies nc

Karen McArthur nc

Andrew Burman nc

Rose Butterworth *

Jonathan Page nc

Sue Davie *

Rosemary Carroll s


CIMA representatives on external boards and committees

CCAB Ireland (CCABI)

CIMA member/representative

Sinead Dillon*

Ciaran Phelan*

Tony Manning*

American Institute of Certified Public Accountants (AICPA)

Steven Swientozielskyj ipp

International Federation of Accountants (IFAC)

IFAC Professional Accountants in Business Committee Member Stuart Chaplin*

HM Treasury Joint VAT Consultative Committee Member Nic Davison

Accountancy Europe

General Assembly

Technical Advisor

Corporate Reporting Policy Group

ESG Reporting Taskforce

Professional Ethics and Competencies

Working Party

Hilary Parker

Samantha Louis s

Bryony Clear-Hills s

David Hackett s

David Hackett s

Karen Newbury*

University Courts

University of Bath Elaine Richardson

University of Lancaster Richard Kenworthy*

City University, London Gulzari Babber* pp

Loughborough University Glynn Lowth* pp

University of Surrey Mike Agate *



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May 2020

Documents

Consolidated financial statements 2020/CIMA Fina… · structures; improved member experience and service provision; and delivered a refreshed Code of Ethics. The Association of International