The BottomlineHong Kong Division May-June 2005 Issue

The Bottomline 01

Presidential MessageAs your newly elected president of the division, may I take this opportunity tothank you for all your support to the division over the past years.

Thanks to the leadership of Mr Paul Yeung, our immediate past president, who putin place a very solid foundation upon which the division can excel.

In May 2005, a divisional council and staff away day was held in Macau and a totalof 13 members and staff participated.

The divisional council and staff away day was organised in view of the UK’sforthcoming review of the 2010 strategy in July 2005. Hence the council was of theopinion that it would be worthwhile to conduct an in depth review to identifystrategy and an action plan for the Hong Kong Division in the years ahead. A fullreport on the council and staff away day has been forwarded to UK forconsideration.

In summary, the participants reviewed the status, image and branding of CIMA inHong Kong. The main issues considered were:a. students and members numbersb. differentiation of management accountancyc. tuition provisiond. member engagement with CIMA Hong Konge. the CIMA brand

In light of the above, it was identified that the Hong Kong Division strategy in theyear ahead need to focus on:- Student recruitment and retention - Members retention

The key message that need to be put across are as follows:-a. Value of CIMA qualificationb. Existence of another stream within the accounting profession and its value to

business and economyc. CIMA international status and recognition

The key target segments that need focusing on in order to develop awareness ofthe CIMA brand:a. Employers b. Organisation / Professional bodiesc. Government / Regulations

A detailed action plan will be put together in line with CIMA global and the 2010strategy which aims to:a. Build the CIMA Brand and reputationb. Encourage all members to participate in CIMA affairsc. Actively increase awareness on the distinction between management

accounting and audit

Last but not least, I must emphasise that the success of the Hong Kong Division isvery much dependent on the level of teamwork and commitment of council,committees, members, students, secretariat and area representatives.

Hence each of you is important to our success - let us work together as a team toachieve our goal.

Regards

Albert Law FCMAPresident, CIMA Hong Kong Division

Professor John K. CourtisCity University of Hong Kong

acapjajc@cityu.edu.hk

Aquestion I ask my final semester undergraduatestudents is whether they have ever taken a class inany accounting subject that deals with the

construction techniques of financial graphs. The answer isthe same each year, a somewhat shocked ‘no’! I then askthem whether they could identify a misleading graph. Theirresponse is either ‘no’ or ‘don’t know’. The curricula foraccountants are silent on how graphs should be prepared.This omission may be because traditionalists would doubt therelevance of graphs within the domain of accountancy.However, accounting regulators and standard-setters areexpressing a growing awareness about the importance ofdisclosure and communication within financial reporting. Anaspect of communication is graphical presentation, whichtogether with use of colour is an increasingly important formof visual rhetoric and a growing practice within corporateannual reports.

Should accountancy students care about graphicalpresentation? Yes, because those who join the industrywill be involved in all aspects of the presentation ofinformation. The correct use of graphs will be essential inorder to communicate accurately and assist well-informeddecision-making, but also pragmatically to avoid mistakes,faulty decisions and potential litigation. Those who joinpublic practice should examine graphs as part of the totalattestation review to determine whether the stories theytell are consistent with what appears in the traditionalfinancial statements. Some clients might even requestadvice about the preparation of financial graphs toensure the intended messages are appropriatelypresented. Can you imagine a freshly minted accountancygraduate saying to a client ‘sorry, I have no idea how tohelp you because I did not study graphical preparation aspart of my degree’? Professionally, that is not acceptable.

Why should we be concerned about misleading financialgraphs? Graphical presentation in annual reports hasgrown significantly over time. Those responsible for thepreparation of the annual report believe that readers are

Misleading Financial Graphsand Impression Management

02 The Bottomline

attracted to visual stimuli and graphs are one such response.Readers should feel that they can rely upon graphs tocommunicate the same messages as those in the financialstatements with representational faithfulness. If graphs aremisleading, and they are relied upon, users may be deceivedinto behaviour that they would not have otherwiseundertaken. Potential resource misallocation from a numberof quarters could arise as a result.

Benefits of graphsThere are many alleged benefits of graphical presentation.Claims have been made that a carefully constructed graphallows the reader to absorb, understand and retaininformation about trends and relationships. It is also allegedthat graphs help users to acquire information faster. There isa presumption that these benefits will lead to betterinformed users and thereby improve the quality of resourceallocation decision-making. While these claims arereasonable and feasible, there is a need for supportingresearch evidence to show that they actually do improvedecision quality or speed. At present, accountancy-basedresearch studies into the benefits of graphs are scant.

There are at least nine generic benefits of graphs:

1. Colour and design are aspects of visual rhetoric thatcaptures and retains the attention of a reader whomight otherwise pay less attention to a dull-lookingreport.

2. The likelihood of accurately conveying messages fromsender to receiver is increased if the appearance ofgraphics (colour, shading and dimension) creates orexpands interest in text or tabular financialinformation.

3. A reader’s perception skills are assisted in absorbingand understanding summary financial data.

4. There is a reduction in the likelihood of informationoverload because of the summarisation effect.

5. Readers are generally able to process informationmore easily and quickly than through either narrativediscussions or numerical tabulation, especially if thematerial is not particularly familiar.

6. The essence of the underlying meaning can begrasped more quickly because the graphicalpresentation of flow sequences, and relationshipstakes less space than prose and therefore reducestime needed to absorb the data.

7. Information is remembered more clearly because thespatial aspect helps memory recall throughvisualisation of the relationship.

8. Relationships can be highlighted through the use ofsymbols, colour and dimensions, and patterns, cyclesand underlying trends can be revealed that may notbe obvious from tables.

9. A universal visual language is provided to readersregardless of their educational, cultural or experiencebackgrounds.

Limitations of graphsGraphs may be prepared in ignorance of correct design andconstruction techniques, or they may be prepared todeliberately deceive. Some of the construction problemsencountered are non-zero baselines, nonhorizontal lettering,varying typeface and type size, and more importantly,missing or imprecise titles, axis labels and legends. Theabsence of or too many gridlines can make data valueinterpretation difficult. Other problems arise from multiplescales, non-arithmetical scales, and negative value markerspresented in the same direction as positive value datamarkers. The width of a bar or column and the relative width

2

Comments

• Data markers do not start at zero baseline

• Scales of y-axis above and below the zero baseline are different

• Negative data markers obscure and presented as positive

• Absence of data value

Revised Chart

PROFIT/(LOSS) ATTRIBUTABLETO SHAREHOLDERS

HK$ Million

PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS

HK$ Million

1

Comments

• Negative numbers obscure on data markers and scale

• Trendy sloping visual effects

• Missing vertical axis

• Absence of data value

Revised Chart

Earnings per shareUS Cents

Earnings per share

US cents

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between can influence the visual impression. Highlypatterned, brightly coloured or pictorial backgrounds, andcross-hatching and shadows can distract and create opticalillusions. Creative visual effects are often impossible todecipher and reconcile with the underlying data. Theviewing angle can emphasise or de-emphasise the last seriesof numbers and thereby distort data display (see CICA, 1993).Some examples of improper construction techniques can beseen in the accompanying graphs, taken from actual HongKong annual reports, but unnamed to protect the ‘guilty’.

There are at least five generic limitations of graphs:

1. Contraction or expansion of the vertical, horizontal,or both scales can change the dimension of thegraphical image and accentuate or dampen trendsand relationships.

2. Graphs can be drawn with a lack of precision and sodistort accuracy which could be conveyed by numbers.

3. Combining and condensing information for graphicformat causes some loss of detail.

4. Well-graphed useless or irrelevant information is stilluseless and irrelevant.

5. Complex designs and information overload canobscure insight into financial data.

Impression managementImpression management is a communication strategyintended to influence investor perceptions and beliefrevisions about the company in which they have an interest.It can manifest itself through various forms of rhetoric, suchas word crafting narrative disclosures in the chairman’saddress, or through visual imagery such as colour, animation,graphics, and photographs. One or more of these methodscan be used by management to convey a desired image tothe readers of its corporate documents. This image may ormay not correspond exactly to the information contentembodied in the financial statements.

If there is a link between the presentation of graphs andinvestor decision making, then misleading graphs could‘trick’ investors into behaviour that they would not engagein if they were aware of the true facts. Where the intentionis to deliberately mislead users, financial graphs are beingused in a sinister way as part of impression management todistort economic reality. From a societal point of view, this isdeplorable because of its potential to harm investors,creditors and suppliers by implying a state of affairs that isnot correct. The theory is sound, but the evidence linkinggraphs to decisions is lacking.

Empirical studiesA series of studies since 1989 covering six countries havefound that about 80% of leading companies use graphs intheir annual reports. A wide range of mainly financial topicsis graphed. Four transnational key financial performancetrend variables are dominant: sales, income, EPS anddividends per share. Some relationship exists between theselection of these variables and corporate performance (seeBeattie & Jones, 2000).

Two surveys were undertaken of graphical disclosures withinannual reports of Hong Kong public listed companies(Courtis 1996, 1997). A sample of 364 annual reports for1992/3 and another of 327 for 1994/5 were examined. Thesecond survey investigated the incidence of misleadingconstruction techniques. Of the 578 graphs appearing in 116annual reports, 301 or 52% were classified as misleadingbecause of some violation of:

1. Use of proper vertical and horizontal scales and asingle zero baseline.

4

Comments

• Missing zero baseline

• No horizontal girdline provided

• Trendy 3-dimensional visual effects

Revised Chart

TOTAL DIVIDENDS PER SHARE

CENTS

TOTAL DIVIDENDS PER SHARECENTS

3

Comments

• Trendy 3-dimensional visual effects using sloping lines

• Inconsistent distance between girdlines

• No chart title

Revised Chart

Cumulative growth %

Airline Ticketing

Overseas Travelling

Ticketing BusinessCumulativegrowth %

04 The Bottomline

5Turnover and Pre-Tax Profit

$ Million

Comments

• Exaggerated width of the lines makes the actual data difficult todetermine

• Missing vertical axis

• Trendy visual effects using colors

Revised Chart

Turnover and Pre-Tax Profit

$Million

Turnover Pre-tax profit

Turnover

Pre-TaxProfit

6

Comments

• Order of time series is reversed

• Missing zero baseline

• Trendy visual effects by using 3-dimensional inverted triangle

• Missing axes

Revised Chart

Shareholders' funds

Shareholders' fundsHK$ Million

HK$6,820,687,000

HK$5,470,226,000

HK$3,156,900,000

HK$2,131,454,000

HK$2,252,286,000

2. Time values in a time-series chart appear left to righton the horizontal scale; sectors in a pie chart arearranged in descending sequence by proportion.

3. Use of clear negative numbers.

4. Cautious use of creative visual effects.

5. Careful choice of the number of years and number ofsectors to be presented.

About 70% of these companies constructed at least onemisleading graph, with one company constructing as manyas 19. The most common violations of construction guidelineswas misuse of proper balance scales (38%), creative visualeffects (25%), and descending sequences in a pie chart(20%). The most common misleading charts were of thecolumn type (57%), followed by pie (31%), line (6%), bar(4%) and other (1%). Sales or turnover information was themost commonly misrepresented financial data (28%),followed by profits (22%). A more contemporary localreplication study is needed to determine what changes haveoccurred in graphical presentation since 1994/5.

ConclusionEvidence is needed about the real utility of graphs to annualreport readers. The impact of graphical disclosure is notsufficiently understood. Whether there is a linkage betweengraphical presentation and resource allocationdecision-making has not yet been determined. Almostall of the benefits attributed to graphs, while soundingquite reasonable, nevertheless have no supporting researchevidence. Until such time as this position is rectified,accountancy and management organisations should set outsome guidelines about graphical construction techniques. Inaddition, mild education reform is needed in accountancy toinclude at least one class in a three year undergraduateprogramme focusing on correct graphical constructiontechniques.

What particular group should take responsibility forgraphical presentation is unclear. Does it fall within thebailiwick of management, the accountant, the auditor,public relations, or all of these? To the best of my knowledgethere are no accounting and auditing standards anywhere inthe world that prescribe how graphs are to be constructed,presented and audited. Notwithstanding, annual reportpreparers that employ graphs should take the initiative toconsciously avoid improper construction techniques and anymislabelling of axes that could impair effectivecommunication and mislead users.

Additional readingBeattie V. & Jones M. J. (2000), Changing Graph Usein Corporate Annual Reports: A Time-Series Analysis,Contemporary Accounting Research , Vol. 17 No. 2,pp. 213-226.

Beattie V. & Jones M. J. (1992), The Use and Abuse ofGraphs in Annual Reports: Theoretical Frameworkand empirical Study, Accounting and BusinessResearch, Vol. 22 No. 88, pp. 291-303.

Canadian Institute of Chartered Accountants (1993),Using Ratios and Graphics in Financial Reporting,Research Report, Toronto, Canada, pp. 222+

Courtis, John K. (1996), Annual Report Chart Graphics:Emerging Interest, The Journal of Contemporary Issuesin Business and Government, Vol. 2 No. 1, pp. 5-14.

Courtis, John K. (1997), Corporate Annual ReportGraphical Communication in Hong Kong: Effective orMisleading? The Journal of Business Communication,Vol. 34 No. 3, pp. 269-288.

Mr Albert Law Yu Kwan FCMA, President of CIMA HongKong Division is invited to be the Honorary Associate ofthe School of Business of Hong Kong Baptist Universityfor the period 1 March 2005 to 31 December 2007. TheHonorary Associateship Scheme is an important newinitiative of the School aimed at honoring businessexecutives and professionals with outstandingachievement and a willingness to further theprofessional association with the School.

Honorary Associate of School ofBusiness, Hong Kong Baptist University

Editor’s NoteAt this time of the year there are many thingscompeting for attention - families and school holidays,dealing with the weather which can be unpredictableas well as continuing to support our organisations andour workplaces. This can all be stressful in its own way.Let us continue to balance our personal ‘score cards’so we can survive better in times of ‘the unexpected’.

The Bottomline 05

7

Comments

• Improper sequence of sectors

• Same color for rim and its associated sectors

• Trendy 3-dimensional visual effects

Revised Chart

Breakdown of Operating ProfitWholesale &

Retail12%Other

Investment1%

Travel & Hotel19%

Industrial26%

Infrastructure 20%

PropertyDevelopment &

Investment22%

Breakdown of Operating Profit

Wholesale &Retail12%

OtherInvestment

1%

Travel &Hotel19%

Industrial26%

Infrastructure20%

PropertyDevelopment& Investment

22%

8

Comments

• Too many sectors in pie chart

• Sectors not in descending sequence

• Trendy 3-dimensional visual effects

Revised Chart

Industrial ProductsTurnover for the year ended 31 December 1994

Textile & Sportwear – 1.5%

Pharmaceutical – 2.1%

Soda Ash – 5.7%

Steel – 11.7%

Chemical – 33%

Plastic – 24.8%

General Trading – 18.5%

Techincal Equipment – 2.7%

Industrial ProductsTurnover for the year ended 31 December 1994

Chemical – 33%

Plastic – 24.8%

General Trading – 18.5%

Steel – 11.7%

Pharmaceutical & Soda Ash –

7.8%

Techincal Equipment and

Textile & Sportwear – 4.2%

Malaysia Members Visit

▲ Mr Jeffrey Cheah FCMA,former Malaysia DivisionalCouncil Member and Ms FongLye Leen FCMA (aka Mrs KKWong) took time off to visitMs Juliee PL Tan who wastruly honoured by theirpresence and friendship overthe years.

▲

Invitation to Contribute1. Submit your cover story, member profile or student

forum articles to vivian.fung@cimaglobal.com

2. Join as committee members: Members and StudentsServices Committee, Communications Committee andEnterprise Governance Committee. Please informhelen.lam@cimaglobal.com

3. Guidance to CIMA students: study buddy groupfor any CIMA papers, discuss further withjuliee.tan@cimaglobal.com

Reach OutPromote your company CPD programmes, vacancies,product and services through our Special MailingServices or quarterly newsletter Bottomline. For moreinformation, contact Ms Juliee P L Tan at 2511 2003 oremail juliee.tan@cimaglobal.com

06 The Bottomline

AGM and Rec

▲ L to R (standing): Ian Christie, Vivian Fung, Mimi Keung, Irene Cheng, PeterChoy, Walton Luk, Sidney Sze, Andy Tsang, Joseph Yau, Leo Cheung, JayneChristie, Michael Chan, Juliee Tan, Teddy Iu, Amy Lam and Helen Lam.L to R (sitting): Jimmy Pun, Paul Yeung, Kingston Ho, Albert Law, SY Choi,Kenneth Chan and Patrick Yeung.

▲ Mr Michael Chan FCMA receiving a tokenof appreciation for his dedicated serviceas past treasurer to the Division

▲ Members toasting to the

▲ Past Presidents and staff receiving a token of appreciation for their contribut

CIMA elects new PresidentCIMA, the Chartered professional body with a sole focus on accountants in

business, has elected its Hong Kong Division’s President, Deputy Presidentand Vice President at its Annual General Meeting, held on 23 June 2005.

Mr Albert Law FCMA has been elected President, Hong Kong Division.Albert is currently the Financial Controller of K. Wah ConstructionMaterials Limited. Before taking up the role in 1997, he held varioussenior financial and management positions in different industries.Experience of last 30 years covers many aspects of corporate financewith focus on investment and global financial markets. In his presentposition with K. Wah, he has participated in over 20 new investmentprojects in the Mainland China and a number of corporate exercises.Albert is currently members of the advisory Board of the School ofBusiness of Hong Kong University and Honorary Associate of HongKong Baptist University.

Mr SY Choi FCMA has been elected Deputy President of the HongKong Division. He is currently Director of Asia Consulting GroupLimited, a specialist economics and financial managementconsultancy serving government and corporate clients in Hong Kong.He was formerly a consulting director with Coopers & Lybrand andFinance Director with the Hong Kong Housing Society. SY currentlyserves as a Court Member of the University of Hong Kong and itsClerk of Convocation. He is also Vice Chairman of the HKUGAEducation Foundation.

Mr Kingston Ho FCMA has been elected Vice President of the HongKong Division. He is currently Senior Manager, Wholesale BankFinance of Standard Chartered Bank (Hong Kong) Limited. He wasformerly Regional Co-Head of Capital Market Operations of CalyonHong Kong Branch. Kingston is also Regional Director of the HongKong Chapter of Professional Risk Managers’ InternationalAssociation.

The newly elected president said ‘CIMA’s unique business perspectiveis pivotal to our position as world leader in the qualification andsupport of professional accountants in business. We are forwardlooking executives with firm roots in finance. This sole focus ofbusiness, coupled with our practical experience requirements, enablesus to contribute and add value to our employers and to localeconomy at large.

▲ CIMA elects new President, Mr Albert Law FCMA

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cognition Night Hong KongDivisional Council2005/2006PresidentLaw Yu Kwan, Albert FCMA

Deputy PresidentS Y Choi FCMA

Vice PresidentHo King Lam, Kingston FCMA

CIMA Council Member, Area 15Chan Kai Chi, Kenneth FCMA

Immediate Past-PresidentYeung Chun Pong, Paul FCMA

TreasurerHo King Lam, Kingston FCMA

Council MembersChan Yui Lung, Michael FCMAChan Kin Lok, Paul FCMALee Shiu Chuen, Andy FCMAPun Kwok Wing, Jimmy FCMATsang Fan Fung, Andy FCMAYau Shiu Wing, Joseph FCMACheng Sau Ying, Irene ACMACheung Wan Yin, Leo ACMALee Kwok Ming, Don ACMAPang CH, Alex ACMA

CommunicationsCommitteeChairmanHo King Lam, Kingston FCMA

Vice ChairpersonJayne Christie ACMA

Committee MembersChan Nap Tuck, Anthony FCMALaw Yu Kwan, Albert FCMAYau Shiu Wing, Joseph FCMAYeung Chun Pong, Paul FCMAKee Ying Sum, Sam ACMA

By invitationAgatha Fraser

EditorMargarret Fidow ACMA

Staff ContributorsJuliee PL TanVivian FungHelen Lam

▲ Mr Paul Yeung FCMA receiv ing PastPresident's badge from newly electedPresident, Albert. ▼

▲ Annual General Meeting in progress. ▼

One of the key pre-requisites for maintaining Hong Kong’s status as a leadingfinancial center in the world is among other things, the supply of managementaccountants who can help business create value in good times, and survive duringrecession. We have seen many senior members of the institute gaining recognitionthrough outstanding performance and contribution to their employers and reachtop management and board positions in leading local and multi-nationalcompanies. They have also contributed to the success of Hong Kong. However, withthe underdevelopment in training of management accountants in the local scene,we see the potential shortage of this important expertise becoming acute and ifnothing is done to address this imbalance in terms of focus, and resource allocationfor the training of management accountants, the Hong Kong economy willinevitably suffer. On this, Albert said it is one of the Divisional goals in the yearahead to promote training and development of management accountants locally.

e joyous occasion and enjoying the fellowship. ▲

ion and support towards the Divisional activities ▲

08 The Bottomline

The topics covered were aimed at progressing the growth of theCIMA brand and reputation in Hong Kong in line with the global2010 strategy, and proved to be both challenging and evocative ofvaried and productive debate.

The formal meeting was opened on Sunday afternoon by Mr Albertlaw, the Organising Chairman, followed by a recap on the overallstrategic vision by Mr Paul Yeung, the Divisional President. It wasthen onto short updates on current activities:

(i) Key objectives for 2005;(ii) Member and Student growth;(iii) Strategic Scorecard;(iv) Threats, Opportunities, Weaknesses and Strengths(TOWS)

The briefings were then followed by group syndicate discussions andpresentations on key success drivers: relative to recruitment,employer demand, brand awareness and recognition. These provedto be quite lateral in thought and consequently generated a highvolume of quality output to be taken forward and formulated intodefinitive actions.

Prior to the start of the formal proceedings the group had a mostenjoyable team building session consisting of a semi-physical teamchallenge requiring the use of both brain and balance - a strangelyelusive combination for most of us! It was a hot day so by theevening, post the meetings, we were mentally and physically tired;and looking forward to a relaxing evening dinner. We were notdisappointed. The ambience of the restaurant chosen was typicallyMediterranean in keeping with the Portuguese tradition of Macau,and the food was excellent !

Suitably refreshed the nextday, after a sumptuousbreakfast, the groupre-convened to addressthe Day 2 programme -identifying actions to betaken and nominatingaction owners. Again,three and a half hours ofdebate and discussionlater, it was rewarding tosee a comprehensive set ofproposed tasks andappointed ‘champions’ totake them forward. Quitean achievement when theinherent volume of issuesare considered.

The remainder of the daywas devoted to a locallunch and some briefsightseeing prior tocatching the early eveningferry back to Hong Kong.

CIMA at Work and Play in Macauby Ian Christie FCMA

�

The CIMA Divisional Council and Staff Away Day was held overthe long holiday weekend on Sunday 15 and Monday 16 of May.The programme for the two days consisted of a well balancedcombination of daytime structured meetings with social gatheringand sight-seeing in the free time.

Given this was the first such occasion which it wasmy pleasure to attend with CIMA in Hong Kong -having been invited to join in the facilitation of thesyndicate group discussions and presentations - Imust commend the dedication and truecommitment to the development of thequalification which was evidenced by the Divisionalcouncil members, joining staff and invited guestparticipants. They worked hard and took to thetasks with enthusiasm and intellect - and I amcertain made considerable strides forward.

For the rest of us, we should make sure we give ourfull support in assisting them in their efforts to pushCIMA to the forefront in Hong Kong in the future.

The Bottomline 09

CIMA members vote in favour of mandatory CPDOver recent months you will have received communicationsfrom CIMA regarding the proposed new CPD scheme, CIMAProfessional Development. At the recent CIMA Annual GeneralMeeting, held on the 11 June 2005, members voted in favourof the scheme as part of the changes to the Byelaw andMembers’ Regulations. This means that from January 2006 CPDwill become mandatory for all CIMA members.

CIMA will keep members informed over the comingmonthsCIMA Professional Development will be launched in November,when members will be sent a full information pack. In themeantime, we shall continue to update you on developmentson a regular basis through channels such as our e-newsletter,Insight, targeted emails, Financial Management, and thewebsite. For many members, it will be ‘business as usual’ as youwill already be undertaking appropriate and sufficient activitiesto meet your CPD requirements.

Products and services to support members’ CPDCIMA is currently developing a range of supporting productsand services for CPD, called ‘CPD Solutions.’ As part of thisrange, June will see the launch of a suite of online products,freely available to members, which includes:

CIMA Inform - a compliance and financial managementresourceBusiness Source Corporate - the CIMA e-journal resourceHarvard ManageMentor PLUS - the CIMA business skillsresource

CIMA Professional Development

���

�

The fourth product in the suite will be launched in September:

CPD Planner - a self-diagnostic, personal development toolthat includes an ideas generator for development activitiesand an action plan template for recording activities.

Members will be able to access these products through ‘MyCIMA’ (the member area on the website) or by typing in theURL: www.cimacpdsolutions.com. Members will then needtheir Contact ID and their CIMA password (created the firsttime a member signs into ‘My CIMA’).

The first three products will be available to members from 23June and access details will be posted out to all members atthe end of June. These products are in addition to the CPDservices which are already available such as local CIMA eventsand technical bulletins and reports.

The CIMA CPD accreditation scheme will launch inthe AutumnAs part of the new CIMA Professional Development Scheme,CIMA is also developing a corporate CPD accreditation schemefor launch in the Autumn.

The accreditation scheme will focus on raising the awareness ofprofessional development within organisations. Members whowork for employers who are part of this scheme will only needto complete their employer’s development record, provided itmeets the accreditation scheme requirements, therebyenabling them to concentrate on the professional developmentactivities rather than administration.

For more details on the CIMA Professional DevelopmentScheme, visit the website at: www.cimaglobal.com/cpd oralternatively, contact your local branch or email us at:cima.cpd@cimaglobal.com.

One of the facets of the work of the CIMA Regional Project Director,Judy Vulker, is to ensure that all suppliers of education in Hong Konghave access to the CIMA exemptions route. This ensures students canenter the CIMA qualification with some advanced standing as a resultof their Degree or Diploma. As the new CIMA qualification has nowbeen examined for the first time in May 2005, it is imperative that allthe Education providers have their courses reassessed to compare themto the new syllabus.

As a result of the work progressed since March, the following haveprovided, or are in the process of providing documentation to theEducation Partnership Team in the CIMA UK office for accreditation:Baptist University, Chinese University of Hong Kong, Vocational TrainingCouncil, University of Hong Kong, HKU SPACE, Hong Kong PolytechnicUniversity, City University of Hong Kong, University of Science andTechnology, FTMS and the British Council. During visits to each campusand examination centre, Judy together with Juliee Tan have been ableto provide support to staff in the areas of profiling the CIMAqualification, Computer Based Assessment for Certificate level,exemptions routes, and CIMA HK activities. Judy and Juliee will completetheir visits to the remaining Colleges and Universities by the end of 2005.

CIMA visits The Chinese University of Hong Kong, Faculty ofBusiness. L to R: back row: Mr Alan Wong, Executive AssistantSchool of Accountancy CUHK, Ms Juliee PL Tan, ManagerCIMA Hong Kong Division; Professor Kevin Lam, DirectorPostgraduate Diploma in Professional Accountancy CUHK;Front row L to R: Dr Michael Ferguson, Director Master ofAccountancy Program CUHK; Ms Judy Vulker, CIMA DirectorAsia/ Pacific; Professor Jia-Zheng Xie, Director School ofAccountancy CUHK; Dr Danqing Young, Lecturer School ofAccountancy CUHK.

Increasing Accreditation of University,College and Private Tuition providers inHong Kong

▲

Kingsley Dong

▲ The CIMA HK Delegates visited the MBA Center of theShanghai University

▲ CIMA Delegates in the Campus of the Shanghai University

On the evening of Friday 26 May, a fellowship dinner was held formembers and students based in mainland China (particularly Shanghai) tomeet a Hong Kong delegation led by Mr Paul Yeung Chun Pong, Presidentof CIMA Hong Kong Division. The attendees are from different businesses,such as General Motors Corporation, HSBC, Unilever, K. Wah Group, Hyatt,Philips, PricewaterhouseCoopers, etc. The members shared their ideas andexperience about successful career paths and the development ofmanagement accounting with students. We would like to extend sincerethanks to Mr Cheung Hon Wan ACMA for helping organize this wonderfulnetworking event.

Because there was limited seating available, we had to allocate the seatson the first-come-first-served basis so that the those people who repliedtoo late were not able to join us this time. Copies of photos were send toparticipants by email for their reference. It is hoped to see all theinterested members at future events .

10 The Bottomline

As a mainland CIMA student now working in Hong Kong, I am pleased to see therecent move of CIMA to enhancing the support to mainland students. Inpreparation of my first final stage exams in May 2004, I found it was reallydifficult to get the related revision materials like answers to past papers.Fortunately, I was invited by CIMA HK office to attend a seminar on study andexam skills before the exam, which was really helpful. In addition, CIMAShanghai office also started to organise seminars and sharing gatherings.

China is an increasingly growing market of which certified managementaccountants are in great demand. Thus I believe that CIMA is definitely gettingreturn from its investment the exciting and amazing economy soon. I would liketo take this opportunity to thank CIMA for providing us with the opportunity offurther development and wish all the members and students the best in theirstudy and career.

Student Forum

Ifeel great after attending the workshop conducted byCIMA Hong Kong Divisional Office on 18 June. Theworkshop was divided into two parts – Career Profile

Briefing and CIMA new webpage demo. As a passed finalist,I have benefited the most from the Career Profile Briefingsection. Juliee, our Divisional Head, helped us to understandwhat was the relevant work experience that countedtowards CIMA membership. She also taught us the way topresent our extended CV in the most professional manner.

This was a meaningful event as I was able to gain valuableinformation, as well as making new CIMA friends!

by Ms Avy Choi

CIMA Fellowship Trip to Shanghai *26 – 29 May

▲ Happy Fellowship Dinner in Shanghai with members and students fromall over Shanghai

by Vicky Li, Development Manager, CIMA Shanghai

Career Profile Briefing

Presidential engagement13 Jun All Accountants Lunch, Dr. Anthony Tam,

President of Canada's Certified ManagementAccountants (HK Branch), and Advisor ofPartnership Development in Dean's Office,College of Professional and ContinuingEducation, PolyU

15 Jun CMA Canada – Hong Kong Branch AnnualDinner 2005

16 Jun Cocktail reception on the occasion of FIFTHANNIVERSARY, Hong Kong Exchanges andClearing Limited

23 Jun CPA Australia - Exclusive Luncheon Forum

‘Good Corporate Governance Can ImproveOrganisational Performance ’– A Myth or a Reality?

24 Jun IHRM Grand Opening Cocktail Reception,Hong Kong Institute of Human ResourceManagement

Future events5 July One-day CPD programme on ‘New Trends in

Budgeting’ by Mr Aubrey Joachim FCMA

7 July One-day CPD programme on ‘The ChangingRole of the Management Accountant’ byMr Aubrey Joachim FCMA

11 July CPD seminar on ‘Development in China andchallenges to a corporate treasurer’, jointlyorganised with HKICPA

23 July Information Session at 2.30pm, CIMA Office

31 July Family Outing

18 Aug Career Profile briefing and CIMA newwebsite demo at 6.30pm, CIMA Office

20 Aug Career Profile briefing and CIMA newwebsite demo at 2.30pm, CIMA Office

Sept CIMA Fellowship Trip to Guangzhou

May 2005 exam papersThe exam papers are now available to download fromCIMA’s website.

You can find them in the ‘Study resources’ area at:

www.cimaglobal.com/cps/rde/xchg/SID-0AAAC544-869E6A58/live/root.xsl/1377.htm

Best wishesMimi Keung, Administrative Officer left CIMA Hong KongOffice in mid June after three years dedicated services to theDivision. Helen Lam, Assistant Administrative Officer, joinedthe secretariat on Monday 13 June 2005. She can be reachedat 2511 2003 or email: helen.lam@cimaglobal.com.

Hi! I’m Helen, the new starter in CIMA HongKong division. It’s so great that I can takethis chance to say a warm hello to all of you.

I joined CIMA just a few weeks ago but Ireally appreciate the experience I amgaining in my job. It’s so challenging and sodifferent from my previous employment.

Through the job, I can meet so many people in all walks oflife and make friends with them. Not to mention that all ourcolleagues, members and students are nice to me. It’swonderful!

Lastly, I would like to take this chance to say thank you to MsJuliee P L Tan, my manager and Mr Paul Yeung, ourimmediate past president for giving me this valuable chanceto work at CIMA. I will do my best in promoting CIMA infuture. Thank you!

The Bottomline 11

Welcome aboard

For purchase of any British Airways Holidays WorldTraveller Plus* packages to Europe, CIMA members andstudents will enjoy:

- HK$400 discount per package per person- 5% discount on Dining, Sightseeing, Theatre Tickets and

Transfers- 30% discount on Airport Express Line roundtrip ticket

from Hong Kong Station to Chep Lap Kok

* World Traveller Plus - wider seats, extra legroom andmore seat recline (‘20% more space’ than economy class)

Please visit www.jardinetravel.com for package details

Remarks: Travel must commence on or before 31 Mar 06Other terms and conditions apply. For details andreservations, please call 2311 8887

Congratulations!!FellowChiu, Pak Sum Francis Wong, Ping Chiu

AssociatesAu, Man Ching Chan, Lun Yin Yip, Suk MunChan, Chi Hung Eric Chau, Wai LunCheung, Kit Yan, Wing Cheung

Welcome!!Students registered in April - JuneFung, Ka Ming Lee, Robin Wong, Yin Ha AnnHo, Shu Ying Tsoi, Pinky Wong, Yuen Yee

CBA test datesCIMA Students taking CBA exams should enrol withBritish Council directly. For more details, please contactMs Flora Ma at 2913 5177 / 2913 5171.

Test Dates in 2005 Monday -18 July, 15 August and26 September

14 The Bottomline

EMPLOYABILITYm

CIMA (The Chartered Institute of Management Accountants) is the professional body for CharteredManagement Accountants with over 85,000 students and 65,000 members worldwide. The CIMAqualification is based on forward looking education, training and work experience in a commercialenvironment.

MAKE THE MOST OFYOUR CAREER

Are you considering your careeroptions? If a future in financeappeals to you then choosing theCIMA qualification can provideyou with an exciting career. CIMAprovides a passport to careersuccess, and excellent prospectsfor the future, in whatever fieldyou choose.

WHAT IS MANAGEMENTACCOUNTANCY

Management Accountancy isconcerned with providing financialinformation and advice essentialto managing a business.Management Accountants areemployed in all areas ofinternational business: privatesector, public sector, multinationalorganisations and private practice.They look at today’s facts andtomorrow’s possibilities.

REWARD

Through studying CIMA, not onlywill you enjoy a rewarding careerwith excellent prospects for thefuture, but you will also be able towitness the value your input hasto the organisation.With thebroad range of managementexperience gained through thequalification, many CIMAgraduates rise to Finance orManaging Director positions.

To find out more about CIMA and a career in management accounting contact:

CIMA Hong Kong DivisionSuites 1414-141514th Floor Jardine HouseCentral, Hong Kong

E. hongkong@cimaglobal.comT. +852 2511 2003www.cimaglobal.com/hk1