Financial statements For the year ended 31 December 2016 ... · increased by £7.4m, as a result of the discount rate assumption decreasing from 3.75% in 2015 to 2.65% on 31 December

Accounting in extraordinary times

The Chartered Institute of Management AccountantsFinancial statements For the year ended 31 December 2016

The Chartered Institute of Management Accountants, Financial statements 2016 1

Contents

2 Financialperformance review

5 Corporategovernancestatement

8 The Audit and Risk Process Committee

10 Independent auditors’ report

12 Consolidated statement ofcomprehensiveincome

13 Consolidated balance sheet

14 Consolidated statement of changes in funds

15 Consolidatedcashflowstatement

16 Notes to the consolidated financial statements

39 CIMA’sCouncilandExecutive Committee members

2 The Chartered Institute of Management Accountants, Financial statements 2016

SUMMARY – CIMAgeneratedanoperatingdeficitof£4.4min2016,

excludingcharitabletrusts–£1.9mdeficitin2015.

– CIMAplannedadeficitof£3.4mintheyear,baseduponinvestmentinprojects.Thefallinthestrength ofsterlingduringtheyearrelativetobudgetincreasedtheconsolidatedcostsofnon-UKoperationsby£0.6m;whilstincomegrewby5%,asmalloperatingdeficitwasgeneratedfromnormaloperationsduringayearofconsiderablechange.

INCOME – OneofCIMA’sstrategickeyperformanceindicators

istotalincome–£56.7m,5%higherthanin2015.However,the2016totalfell£1.9mshortofourtarget,primarilyduetoslowergrowthofexamincomethanexpected, and because our commercial income did notmeetourambitioustargets.

– Member and student subscriptions increased to £35.0m,up1%.Thisreflecteda3%increaseinthememberpopulationandwasdespiteadipinstudentpopulationfora secondyear.

– Examinationsandexemptionsincomeincreasedby8%,to£13.4m.In2015,incomedeclinedfollowing theintroductionofthenewexamplatformfortheprofessionalsyllabus.Asconfidenceinthenewassessment platform continues, there is greater studentactivityandincomegrowth.

– In2017,weareplanningforincometoincreaseby3%,to£58.3m.

EXPENDITURE – Direct expenditure is allocated against CIMA’s

valuechain,linkedtooutputsgenerated.Indirectexpenditureisallocatedtothevaluechainequallyacrosseachcomponent.

– Allexpenditureincreasedby9%,to£61.0m,including£3.4mforinvestmentprojects:

– Members of CIMA and the American Institute of CertifiedPublicAccountants(AICPA)votedinfavourofcreatingtheAssociationofInternationalCertifiedProfessionalAccountants(the‘Association’).Expendituresupportingthat activitywas£3.1m.

– Theremainderofinvestmentprojectspendconcerned the Global Management Accounting Principles(GMAP),primarilythroughdevelopmentoftheCGMACompass,adiagnostictoolwhichassessesthefinancialhealthofanorganisation inrelationtotheGMAP.

ACQUIRECIMAgained33,604newstudents,thesecondhigheststudentrecruitmentyearforCIMAonrecord,12%higherthan2015.

Fourmarketsincreasedthenumberofnewstudentsrecruitedcomparedtothenumberrecruitedin2015:

– SriLanka–979morenewstudentsrecruited (acquisitionup33%)

– China–304morenewstudentsrecruited (acquisitionup16%)

– India–2,504morenewstudentsrecruited (acquisitionup245%)

– Indonesia–667morenewstudentsrecruited (acquisitionup224%)

Twomarketssufferedfallsinnewstudentsrecruitedcomparedwiththenumbersrecruitedin2015:

– Pakistan–407fewernewstudentsrecruited(acquisitionfell37%)

– SouthAfrica–429fewernewstudentsrecruited(acquisitionfell13%)

Financial performance review


TheChiefFinancialOfficeraccelerated-entryprogrammeinChinageneratedsignificantrevenues.AnewSeniorExecutivefast-trackprogrammewasaddedtoChina’sportfolio.Othermarketsarealsostartingtoventureintoaccelerated-entryprogrammesforseniorfinanceofficers.

Investmentinacquireactivitiesincreasedby2%,up£11.9m,19%oftotalexpenditure.Themajorityofacquireinvestmentisdeliveredby marketsthatengagewithstakeholders,primarilythroughbusinessdevelopment,attendanceatcareersevents,directmarketing,accountmanagementwithemployers,andothernetworking.

In2017,CIMA,aspartoftheAssociation,willmaximisethevalueofourqualification.Wewill increasestudentnumbersto36,000,continuingtofocusonhigh-growthpotentialareas.TheAssociationwilllaunchdirectaccesstoCGMAintheUS,forwhichareconsiderableinvestmentandresourceisbeingmade.

DEEPENEnablingstudentstoachieveexaminationsuccessisbehindgrowingthemembership.CIMAadmitted4,958newmembers,aboveour targetby14%,comparedto the2015achievementoverbudgetof3%.Wetarget atleast4,750newmembersin2017,asourupturn inexaminationsuccesscontinuestogatherpace.

Deepeninvestmentincreasedby9%,to£14.4m. Themostsignificantproportionofexpenditure wastosupportstudent-learningandprogression. Ourassessmentplatform,managedbyPearsonVUE,deliveredalmost108,000exams.

Taking students through exams is a core part of CIMA andtheAssociation’sbusinessmodel.Wecontinuetoinvestindataanalyticalcapabilitytocontinuallyimproveourunderstandingofstudentbehaviourinarapidlychanginglearningandtechnologyenvironment, enablingustoprovidemorepersonalisedstudying.

Wetargeted115,000assessmentsin2017,refreshingoursyllabusandcompetencyframework,toensure wearethemostrelevantaccountingqualification.

Exampass-ratesremainstrong,exceedingtargets.CIMAemploysconsiderableresourcestosupportstudentsthroughexams.Welaunched“CIMAAptitude2”,newpracticequestions,inresponsetostudentfeedback.ImprovementswerealsomadetoCIMAconnect– morepersonalisationandinteractiveresources.

TherevisedCertificateinBusinessAccountingwaslaunchedin2016–withthefirstexamsinJanuary2017.Thesyllabushasbeenupdated,followingextensiveglobalresearchwithindustryleadersandeducators. Itcanbeastandalonequalification,aswellasan entryrouteintotheCIMAprofessionalqualification.

RETAINCIMAhas106,095members,3%upon2015;99%ofmemberswereretained.

Investmenttokeepmembersincreasedto£12.4m,10%upon2015,andwecontinuetohelpthemthriveintheircareers.Onethirdofourinvestmentinretentionprovidesthosememberbenefitsreceivedaspartoftheannualsubscription.Financial Management magazine continued togofromstrengthtostrength,withspecialeditionshighlightingparticularissuesinbusiness.CIMA’swebsitewasre-launchedtoimprovememberexperience.

The2017focuswillbeondevelopingglobalproductsbenefittingfromthecombinedresourcesofournewAssociation.

FULFILWemeasurefulfilsuccessthroughmemberandstudentsurveys.Membersatisfactionincreasedto79%,upfivepointsfrom2015.MembersrecognisethevalueCIMAbringsto theircareersandfutureprospects;theproductsweoffertosupportthem;andtwo-waycommunication.The member net promoter score dropped a point fromlastyear to38%,largelyonvalueformoney andrecognitioninternationally.

Studentsatisfactionandnetpromoterscoreshaveincreasedby7%and3%from2015.Studentsvaluetheprofessional status and global recognition CIMA brings them;syllabuscontentrelevantfortheircareers;goodcustomersupport;andqueryresolutionandrelevantcareerupdates.


Investmentinfulfilincreasedby14%to£7.7m.ExpenditurefocusedonCIMA’sadvocacyagenda;promotingtheGMAP,leadingto412 newGMAP“pioneers”;engagingwithstakeholders;andfocusingonimprovinghowweoperate.

DevelopmentoftheCGMACompass,adiagnostictoolbasedontheGMAP,wascompleted,andisreadyformarket.

OracleFinancialsCloudreplacedourexistingfinancialandplanningsystemsinJuly2016.UsingOracleallowsCIMAtocreateanefficientfinancefunctionandfacilitateinsight on the performance of the management accountingunitpartoftheAssociation.

Engagingwithmembersandemployeesonthe jointventurewasakeyactivity.Withthe overwhelmingvote in support of the Association, attention turned to creating it,and iscontinuing.

REPUTATION AND RESEARCHCIMA’s reputation and research activityhelpedcreatedemand for management accountants, and enhanced theprofileofourstudentsandmembersglobally.

Investmentinreputationandresearch increasedby13%,to£14.6m,intwomainareas:

– Profile-raising–includingstakeholderevents,promotions,relationship-buildingandPR.Welaunchedthe CGMA 100 Think Tank in China, associating CIMA withtopregionalfinancecompanies.

– Wecontinuedtodevelopandpromoteaworld-classacademicandappliedresearchprogramme,providingreportsandtoolstobenefitmembersandstakeholders.In2016,weproduced15thought-leadershipreportsandtools,resultinginmorethan700,000downloads.

BALANCE SHEET AND RESERVESTheUKexperiencedcontinuedvolatilityinbothinvestmentvaluationsandcurrencydevaluationduring2016.Thedeclineinbondyieldswasparticularlyrelevanttothevaluationofpensionschemeliabilities,andthedecline in sterling to the translational consolidation valuationofinternationaltradingactivities.

AlthoughCIMAplannedadeficitfrominvestmentinstrategicprojects,thiswouldnothavecausedadeficitinfunds.Whencombinedwiththeabove,theaccumulatedfundsandreservesmovedtoadeficitof£5m.

CIMA’sbusinessmodelisstrong,withagrowing and long-term membership population generating a long-termincomestream.ThecombinedresourcesoftheAssociationwill provideastrongerplatformforthemanagementaccountingstrategy.Itisprojectedthatthedeficitinfundswillcontinueinto2018,beforemovingbackintopositiveterritoryasourcontributionsreducethepensiondeficitandfuturegrowthbuildsreservesback.Cashbalancesremainedconsistentwith2015,providingtheongoingstrengthforthebalancesheet.

PENSION SCHEMECIMAoperatesadefinedbenefitpensionscheme, whichhasbeenclosedtofutureaccrualsince2012. Duetothegeneraleconomicconditions,thedeficitincreasedby£7.4m,asaresultofthediscountrateassumptiondecreasingfrom3.75%in2015to 2.65% on31December2016.Thisincreasedthepresent valueoffuturepensionliabilitiesby 25%.

Thecurrentdeficit-recoveryplanisinplaceto2023,althoughthiswassetagainstadeficitof£11.4m in2015.Thenextscheduledvaluationandformalreassessmentofthedeficit-recoveryplanisApril2018.Boththeemployerandschemetrusteesworktomanageliabilityexposureandtooptimisetheriskandreturnbalanceforassetmanagement.

John Windle FCMA, CGMAChiefFinancialOfficer

13April2017

Financial performance review continued


THE UK CORPORATE GOVERNANCE CODECIMA is committed to reaching and maintaining the higheststandardsofcorporategovernanceandinsodoingsupportstheUKCorporateGovernanceCode,whichispublishedbytheFinancialReportingCouncil.TheCodeisprincipallyforlistedcompanies,and,assuch, CIMA is not obliged or in some respects able to followitcompletely.However,theCounciliscommittedtoadoptingbestpracticegovernanceprocessesandthereforechoosestoapplytheCodetoCIMA’soperationsas far as it is applicable and appropriate for a professional bodyincorporatedbyRoyalCharter.ThisreportaimstoevidencehowtheCouncilhasadoptedandsupportedtheCode’sprinciplesintheinterestsofbestpractice.

THE COUNCILThegovernance,overalloversightandcontroloftheInstitutearetheresponsibilityoftheCouncil,whichiscomposedofupto54members(theactualnumber asattheendofthe2016yearwas52–seetheendofthese statements for a full list of members during the year).TheCouncilisresponsibleforsettingstrategyandpolicyinlinewiththeobjectsofCIMA’sRoyalCharter,and for representing the interests of, and reporting to, the generalmembership.ItdeterminesandreviewsCIMA’sstrategicobjectives,goalsandmission,approvesanychangestotheregulations,andistheultimateauthoritywithintheorganisation.AllmembersoftheCouncilareequallyresponsibleforensuringthatthebestinterests of the general membership are considered in the decision-makingprocess.

TheCouncilisledbyateamofHonoraryOfficerscomprisingthePresident,theDeputyPresident,the VicePresidentandtheImmediatePastPresident.Thoseincumbentin theserolesduringthe2016calendaryeararedetailedattheendofthesestatements.

InadditiontotheHonoraryOfficers,thebreakdownofmembershipoftheCouncilconsistsofelectedfellows(upto38),co-optedfellows(notexceedingone-thirdofthenumberofelectedmembers)anduptofourotherpersonsastheCouncilmaythinkfit.UponappointmentallnewmembersoftheCouncilareprovidedwithanelectronicinformationpackandinvitedtoattendaninductiondaydesignedtoprovidecloserunderstandingofCIMA’soperationsandstrategy,andthewayinwhichtheCouncilmeetingsareconducted.Inaddition,allmembersoftheCouncilaregiventheopportunitytoattendagovernanceworkshopandperiodicsessionsonchairingeffectivemeetings.MembersoftheCouncilmaynotberemuneratedfortheirworkforCIMA,exceptaspermittedbytheRoyalCharter,ByelawsandRegulations.Aregisterof Councilmembers’interestsismaintained,

whichdetailsanypersonalorbusinessinterestswhichcouldgiverisetoaconflictofinterestbetweenCIMAandotherbodies.

ThecurrentPresident,AndrewMiskinFCMA,CGMA, waselectedbythemembershipatthe2016AGM,ontherecommendationoftheCouncil.HewillbethehonoraryleaderofCIMAforoneyear,duringwhichtimeheactsasChairmanoftheCouncilandExecutiveCommittee,andrepresentstheinterestsofCIMAexternally,includingtotheGovernment,thepublic,theaccountingprofession,regulatorybodies,andthemedia.ThePresident,togetherwiththeteamofotherHonoraryOfficers,providesstrategic direction to the Council in its deliberations and is responsible for ensuring the democratic process oftheCouncilandthemanagementof themeetings. TheCouncilmetsixtimesin 2016includingitsannualstrategysessioninJuly.

ThechiefexecutiveisthemostseniorstaffmemberofCIMAandisresponsibleforproposing,advisingonandimplementingthestrategyasagreedbytheCouncilandisultimatelyresponsiblefortheprofileofCIMA.Thechiefexecutiveandtheexecutivevicepresident–professionalstandards and conduct are the prime source of operational andgovernanceinformationandadvicefortheCouncilandcommitteemembersand,withtheassistanceof the Corporate Affairs department, are responsible forensuringthatadequateandtimelyinformationisavailabletoallowthemtoprepareforeachmeeting.

TheCouncildelegatesactivitiesinlinewithanannuallyupdated scheme of delegations to the appropriate committees,thechiefexecutive,andtheSeniorLeadershipTeam(SLT).TheCouncilhasresponsibilityforestablishing,regulatinganddissolvingboardsandcommittees,settingthetermsofreferenceofthepolicyandgovernancecommittees,andforreviewingtheirperformance.TheCouncilalsoretainstheauthoritytoestablish,regulateand/ordissolvetheRegionalBoards,AreasandBranchesoftheInstitute.Followingtheformation of the Association, the Council has authorised performanceofsomeoftheseactivitiestobeundertakenbytheAssociationBoard.TheCouncilwill,however,retainresponsibilityforensuringthatCIMA’sRoyalCharterobjectsandresponsibilitiescontinuetobeupheld.

In order to ensure the Council is meeting its obligations in respect of ensuring the best interests of members are considered, all members of CIMA are entitled to attend theAGM,tovoteinpersonorbyproxyonmattersrequiredtobereferredtothemembership,andareinvitedtocompleteregularsatisfactionsurveystoensuretheiropinionsareheard.

Corporate governance statement


REPORTING RESPONSIBILITIES OF THE COUNCILThe Council is responsible for the control and managementofthefundsandfinancialactivitiesoftheInstitute.TheByelawsofCIMArequiretheCounciltoensurethatfinancialstatementsarepreparedforeachfinancialyearwhichgiveatrueandfairviewofthestateofaffairsandofitssurplusordeficitforthatperiod. Inpreparingthosefinancialstatements,theCouncil, inaccordancewithbestpractice,isrequiredto:

– selectsuitableaccountingpoliciesandthenapplythemconsistently;

– makejudgementsandestimatesthatarereasonableandprudent;

– statewhetherapplicableaccountingstandardshavebeenfollowed,subjecttoanymaterialdeparturesdisclosedandexplainedinthefinancialstatements;

– ensurethatthefinancialstatementsarepreparedonthe going concern basis unless it is inappropriate to presumethatCIMAwillcontinueinbusiness;and

– providetheexternalauditorwithallinformationrequiredinorderforthemtocompletetheaudit.

ProperbooksofaccountaremaintainedbythedirectionoftheCouncil,asrequiredbytheByelawsofCIMA.Thesedisclosewithreasonableaccuracyatanytime thefinancialpositionofCIMA.Thefinancialstatementsare prepared on a going concern basis as the Council issatisfiedthatthereisareasonableexpectationthat thereareadequateresourcestocontinueinoperationalexistencefortheforeseeablefuture.

TheCouncilisnotawareofanyrelevantinformation thathasnotbeendisclosedtotheexternalauditor.TheCouncil is responsible for ensuring the maintenance and integrityofthefinancialinformationincludedonCIMA’swebsite.LegislationintheUnitedKingdomgoverningthepreparationanddisseminationoffinancialstatementsmaydifferfromlegislationinotherjurisdictions.

EXECUTIVE COMMITTEETheExecutiveCommittee,onbehalfoftheCouncil,co-ordinatestheactivitiesofthecommitteesreporting totheCouncilandmonitorsthedevelopmentandimplementationofstrategy,includingthethoroughreviewofriskandmitigationonsystemsandcontrols. Italsohasoversightofbrand,communications,marketingandexternalrelationstodeliverCIMA’sstrategicobjectives(seeourIntegratedReport2016formoredetails).TheCommitteeconsistsofthePresident,

whochairsthemeetings,allHonoraryOfficers,thechairpersons of the Council delegated committees, thechiefexecutiveandotherelectedmembersoftheCouncil.

Duringtheyear,theCommitteemetsixtimesandhasadhered to its terms of reference in the consideration anddevelopmentofthefollowingmattersonbehalf oftheCouncil:

– OversightandchallengeofthekeyactivitiesundertakenbyallcommitteesestablishedanddelegatedbytheCouncilandmaintainingfocus on strategic areas to ensure the long term success ofCIMA;

– TheformationoftheAssociationanddevelopment ofitsgovernancearrangements,thevaluedrivers fortheAssociation,andprogresstowardsdeliveringthosedrivers;

– The funding of the Global Management Accounting Principles(GMAP)project;

– Thedevelopmentofthe2016IntegratedReport ofCIMA;

– CIMA’spensionschemedeficitrecoveryplan,and thedevelopmentofassurancearrangementsfor theschemetrustees;

– ThereviewofCIMA’sglobalriskregisterinrelationtomonitoring, managing and reducing the impact of risk occurrences,assessingthescopeoflikelyriskeventsandensuringfuture“horizon”risksarecaptured;

– ReviewofCIMA’smediaspokespeoplepolicy;and – Reviewingtheparametersusedforsettingmember

andstudentfeesfor2017tomeetCIMA’sstrategy,focusedonsustainedmembershipgrowth,global andproduct expansion.

TheExecutiveCommittee’srolehasbeensubsumedbytheManagementAccountingBoardoftheAssociationwitheffectfrom1January2017.

APPOINTMENTS COMMITTEETheAppointmentsCommitteeisoneofCIMA’sgovernancecommittees,whichmeetsaminimumoffourtimesayearandasandwhennecessary.TheCommitteemetseventimesduringtheyear(seethebackofthisreportforalistofmembersduringtheyear).

Itisresponsibleforoverseeingtheselectionandrecruitmentofmembers/individualstoserveonCIMA’scommittees.ItappointstheChairmen,ViceChairmenand members of the Conduct Committees in accordance

Corporate governance statement continued


withthelawsoftheInstitute.Itsdecisionsandnominations are made against the background of theRoyalCharter,ByelawsandRegulations,CIMAstrategy,andthelegalandproceduralframework whichgovernsthefunctionsofthisCommittee.Ithasdelegatedauthorityandresponsibilityforco-ordinatingthe arrangements for all the elections, including elections totheCouncil,selectionofthenextVicePresidentialcandidate,policycommitteechairmen,and‘withoutportfolio’membersoftheExecutiveandAppointmentsCommittees.ItalsohasdelegatedauthorityfromtheCouncil to appoint chairmen and members to CIMA’s delegated committees, and members to represent the Instituteonothernon-Institutebodiesororganisations.Asapartofitsdelegatedresponsibility,italsoapprovesnominationsfortheInstitutemedalsandotherawards.

TheAppointmentsCommitteehasresponsibilityforexecutiveappointmentsasrequiredunderitsterms ofreferencetogetherwithconsiderationofsuccession,pensionbenefitsandotherhumanresourceissuesfor theseniormanagementoftheInstitute.As apart ofthisresponsibility,theCommitteeapprovesseniormanagement appointments and remuneration packages, andindoingsoit willconsidertheremunerationofstaffatsimilarlevelsincomparableorganisations,andtherelativeremunerationofotherCIMAstaff,whileavoidingexcessivecosts.Itwillalsoensurethatperformancerelatedpayformsanappropriateportionoftotalremuneration and monitor the performance of its appointeesagainstpredefinedcriteria,withspecificreferencetoperformancerelatedpay.TheAppointmentsCommitteealsooverseesandapprovesremunerationlevels,welfarearrangementsandnon-salarybenefitsrelating to pensions, supplementation of pensions, healthandotherinsurancecoverforallstaff.

TheAppointmentsCommitteeensuresthatanypaymentstoCouncilmembersforservicestoCIMA areinaccordancewiththeByelaws.

AspectsoftheworkoftheAppointmentsCommitteewilltransitiontotheAssociationBoardanditscommittees.

CHARITABLE TRUSTS AND OTHER FUNDSTheBenevolentFundisaregisteredcharity,created toprovideassistancetomembersand ex-members, andtheirfamilies,intimesof hardship.Thefundisadministeredbyacommitteeofthreemembersof theCouncilandfivelong-standingmembersofCIMA(seethebackofthisreportforalistofmembers duringtheyear),onbehalfofCIMA,thesoletrustee.

TheAnthonyHowittLectureTrustisalsoaregisteredcharitycreatedtoadvanceeducationinaccounting andrelatedsubjects.Thistakestheformofalecture,normallyeveryotheryear,byeminentspeakersonmatters of interest to accountants and other leading membersofthebusinessworld.Thetrustreceivesincomefromfundsoriginallygiftedfromthefounder,AnthonyHowitt.ThetrusteesareallcurrentofficeholdersofCIMA.

TheGeneralCharitableTrustisaregisteredcharity andwasformedfortheadvancementofeducationin thesubjectsofaccounting,managementaccounting,electronic data processing, costing, auditing, taxation, appliedeconomics,financeandotherrelatedsubjectsofaneducationalnature.Adeedofvariationwasapprovedon30July2010whichprovidedthatthepowertoappointnewtrusteesisvestedintheexistingtrustees.Thetrustisan independentbodywithanarm’slengthrelationshipwithCIMA.

SOCIAL RESPONSIBILITYCIMA takes its role in bringing ethics to the forefront of businessthinkingseriously.Allstudentsareissuedwiththe CIMA Code of Ethics on commencement of their trainingandareexaminedinethicaldecision-making.The code is based on international standards and definesthecoreprincipleswhichaCharteredManagementAccountantmustuphold:integrity,objectivity,professionalcompetenceandduecare,confidentialityandprofessionalbehaviour.Practicalguidanceonidentifyingandresolvingethicalconflicts isprovidedthroughdedicatedresourcesandhelplines.CIMA is also committed to promoting to members their widerdutyofcaretothepublicinterest,beyondtheiremployerorclient,assetoutintheCodeofEthics.

AsanInvestorinPeople,CIMAalsostronglyrecognisestheimportanceofitsownemployees,andthelinkbetweensatisfiedstaffandsatisfiedstakeholders.Tothisend,ithasimplementedextensivehealthandsafety,employeesatisfaction,learninganddevelopment,andperformanceappraisalprogrammes.VacanciesarefilledfromwithinCIMAwhereverpossible.

Andrew Miskin FCMA, CGMAPresident

13April2017


COMMITTEE MEMBERSGordon Grant chairs the Audit and Risk Process Committee(the‘Committee’).MrGrantisaFellowandaPastPresidentofCIMAandiscurrentlyFinanceDirectorofDEMSolutions.TheCouncilthereforeconsidersthathehasrelevantfinancialexperience.TheremainingCommitteememberswhohaveservedthroughouttheperiodareGeorgeGlass(vicechairman),JasonBoxer,SimonBittlestone(appointedJune2016),IanKleinman,KrisMcMasters,TomO’Connor(untilJune2016),andRichardSharp(appointedJune2016);eachhasextensivebusinessexperience.

WhilstonlymembersoftheCommitteeareentitled toattendmeetings,theVicePresident,chiefexecutive,chieffinancialofficer,managingdirector,andthesecretarytotheCommittee,togetherwithrepresentativesoftheexternalandinternalauditors,arenormallyinvitedtoeachmeeting,togetherwith advisersandotherswithappropriateexperience,asandwhenrequiredattherequestoftheCommitteeChairman.

THE ROLE OF THE COMMITTEETheCommitteeexiststoreview,andchallengewherenecessary,theactionsandunderlyingopinionsandjudgementsofCIMAmanagementandemployees, inrelationtotheauditedannualfinancialstatements andIntegratedReportofCIMA(andinterimstatementsandreportswhereappropriate)togetherwithitsvariousregionalboards,charities,trusts,pensionandbenevolentfunds,andthedraftannualaccountsofCIMAsubsidiaries.All such considerations are made before recommending suchreportsandstatementswhereapplicabletotheCouncilforendorsementandapproval.

TheCommitteemetonfouroccasionsduring2016;duringthesemeetings,itheldthreeclosedsessionswiththeinternalauditorsand onewiththeexternalauditor.

The minutes of the Committee are circulated to all members of the Council and the Chairman attends the CouncilmeetingatwhichtheannualaccountsofCIMAareapprovedtogivehimtheopportunitytocomment onanymatterspertainingtotheannualaccounts,theunderlyingjudgementsandothermattersofmaterialrelevancethathavebeendiscussedattheCommitteeduringtheprecedingyear.

FollowingtheformationoftheAssociation,the roleoftheCommitteewilltransitiontotheAssociation’sAuditCommitteetofacilitateoversightacrossCIMA,the AICPAandouralignedareasofactivity.

DURING THE YEAR THE FOLLOWING ITEMS WERE REVIEWED:

– Financial statements and Integrated Report andaccounts;

– Allinternalandexternalauditreports; – Riskmanagementframework; – CompliancewiththeBriberyAct;and – Whistleblowingarrangements

andcompliance.

Additionally,theCommitteetakesanactiveinterestinauditcommitteebestpracticeanddiscusseskeyindustryprioritiesatitsmeetings.Membersareencouragedtoattendappropriatedevelopmentopportunities,andundertakeinformalself-evaluationattheconclusion ofeachCommitteemeeting.

EXTERNAL AUDITPricewaterhouseCoopersLLP(PwC)wasappointedasCIMA’sexternalauditorinJune2015followingatenderprocessapprovedbytheCommittee.However,followingthecreationoftheAssociationofInternationalCertifiedProfessionalAccountants(the‘Association’),CIMAhasadoptedapolicyofnotengagingexternalauditorsfromanyofthelargestfirms,asithasthepotentialtocreateaconflictofinterest.Assuch,CIMAwillbeengaginganewexternalauditorfor2017.

The Committee ensures that the external auditor remains independent of CIMA in all material aspects andthattheyhaveadequateresourcesavailableto themtoenablethedeliveryoftheirauditobjectiveto themembership.TheCommitteereviewstheoverallperformanceoftheauditorsannuallyandisresponsibleformakingformalrecommendationseachyeartotheCouncilonthepositionoftheexternalauditors.

TheCommitteemaintainsapolicyregardingacceptablenon-auditwork,whichincorporatesauthoritylevelsforapprovingsuchwork.Theauditorsareprecludedfromengaginginnon-auditservicesthatwouldcompromisetheirindependenceandobjectivityorviolateanylaws orregulationsaffectingtheirappointmentasauditors.

£316kwasincurredonnon-auditservicesduringtheyear.Thiswasinrelationtosupportinarangeofareas,inparticular£148kfortaxadvisoryservicescoveringthecreationoftheAssociation,£41kforsupportinregionalgovernance,and£41kforassuranceofdatamigration tothenewERPsystem.

The Audit and Risk Process Committee


INTERNAL AUDITRepresentativesfromCIMA’sinternalauditor,GrantThornton,areinvitedtoattendeachCommitteemeetingwhereassuranceisprovidedthatinternalcontrolactivities,whichhavebeensubjecttoaudit,areoperatingeffectively.

The internal audit programme is based upon the risk register,incombinationwithdiscussionbetweenseniormanagementandtheCommittee.

Thefollowingareashavebeensubjecttoaninternalauditintheperiod:

– Regionalgovernance; – Informationassuranceincludingcloud security; – Associationtransformationreview; – ERPsystemimplementation–followup report; – Availabilityofkeysystems–followup report.

TheCommitteehasreceivedreportsonthework carriedoutbyinternalauditandtheresultsoftheirinvestigationsincludingmanagementresponsesandtimelines.Ifanysuchrecommendations,intheopinionoftheCommittee,areunreasonablyrejectedordelayedbymanagementthenthesewouldbereportedtotheCouncil.Nosuchreportwasnecessaryin2016.

RISK MANAGEMENTTheCouncilhasoverallresponsibilityfordeterminingtheriskmanagementpolicy,andthe SeniorLeadershipTeam(SLT)hasresponsibilityfordesigning,implementingandmaintainingsystemsconsistentwiththispolicy.

TheExecutiveCommitteeactivelyreviewstheriskregistertwiceayear.Furthermore,theSLTregularlymonitors CIMA’s performance against past and budgeted financialandnon-financialcriteria.Budgetsarepreparedannually,fullreforecastsaredoneatleasttwiceayear,and targetedreforecastsmaybedonemorefrequentlyasdeterminedbyperformanceormarketconditions.Managementaccountsarepreparedeverymonth,sothatfinancialriskscanbeidentifiedearlyandtheappropriateactiontaken.

Followingareviewoftheriskframeworkand processesin2014,opportunitiesforimprovementwereidentified.Theseimprovements,includinganewsoftwaresolution,wereimplementedin2016.

The risk approach at CIMA is based on that recommendedbytheInstituteofRiskManagement. The risk management procedures are designed to identifyandmanagethoserisksthatcouldadverselyimpacttheachievementofCIMA’sobjectives.While theydonotprovideabsoluteassuranceagainstmaterialmisstatements or loss, the Council is of the opinion that propersystemsofriskmanagementandinternalcontrolareinplacewithinCIMA.

Gordon Grant FCMA, CGMAChairman of the Audit and Risk Process Committee

13April2017


REPORT ON THE GROUP FINANCIAL STATEMENTSOur opinionIn our opinion, The Chartered Institute of Management Accountants’(CIMA’s)groupfinancialstatements (the“financialstatements”):

– giveatrueandfairviewofthestateofthegroup’saffairs as at 31 December 2016 and of its loss and cashflowsfortheyearthenended;and

– havebeenproperlypreparedinaccordance withInternationalFinancialReportingStandards (“IFRSs”)asadoptedbytheEuropeanUnion.

WHAT WE HAVE AUDITEDThefinancialstatementscomprise:

– the Consolidated balance sheet as at 31 December2016;

– theConsolidatedstatementofcomprehensiveincomefortheyearthenended;

– theConsolidatedcashflowstatementfortheyearthenended;

– the Consolidated statement of changes in funds for theyearthenended;and

– thenotestothefinancialstatements,whichincludeasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation.

ThefinancialreportingframeworkthathasbeenappliedinthepreparationofthefinancialstatementsisIFRSsasadoptedbytheEuropeanUnion.

Inapplyingthefinancialreportingframework,the Councilhasmadeanumberofsubjectivejudgements,forexampleinrespectofsignificantaccountingestimates.Inmakingsuchestimates,ithasmadeassumptionsandconsideredfutureevents.

Independent auditors’ report to the members of The Chartered Institute of Management Accountants

RESPONSIBILITIES FOR THE FINANCIAL STATEMENTS AND THE AUDITOur responsibilities and those of the CouncilAsexplainedmorefullyintheReportingresponsibilitiesoftheCouncilsetoutonpage 6,theCouncilisresponsibleforthepreparationofthefinancialstatementsandfor beingsatisfiedthattheygiveatrueandfairview.

Ourresponsibilityistoauditandexpressan opiniononthefinancialstatementsinaccordancewithapplicablelawandInternationalStandardsonAuditing(UKandIreland)(“ISAs(UK&Ireland)”).ThosestandardsrequireustocomplywiththeAuditingPracticesBoard’sEthicalStandardsforAuditors.

This report, including the opinion, has been prepared forandonlyformanagement’spurposestoassisttheCounciltodischargeitsstewardshipobligationsandfiduciaryresponsibilitiesinrespectofCIMAunderthetermsoftheRoyalCharterandByelawsinaccordancewithourengagementletterdated10February2017andfornootherpurpose.Wedonot,ingivingtheseopinions,acceptorassumeresponsibilityforanyotherpurposeortoanyotherpersontowhomthisreportisshownorintowhosehandsitmaycomesavewhereexpresslyagreedbyourpriorconsentinwriting.

What an audit of financial statements involvesWeconductedourauditinaccordancewithISAs (UK&Ireland).Anauditinvolvesobtainingevidenceabouttheamountsanddisclosuresinthefinancialstatementssufficienttogivereasonableassurance thatthefinancialstatementsarefreefrommaterialmisstatement,whethercausedbyfraudorerror. Thisincludesanassessmentof:

– whethertheaccountingpoliciesareappropriatetothegroup’scircumstancesandhavebeenconsistentlyappliedandadequatelydisclosed,

– thereasonablenessofsignificantaccountingestimatesmadebytheCouncil,and

– theoverallpresentationofthefinancialstatements.


Weprimarilyfocusourworkintheseareasby assessingtheCouncil’sjudgementsagainst availableevidence,formingourown judgements,andevaluatingthedisclosures in thefinancialstatements.

Wetestandexamineinformation,usingsamplingandotherauditingtechniques,tothe extentweconsidernecessarytoprovideareasonablebasisforustodrawconclusions.Weobtainauditevidencethroughtestingtheeffectivenessofcontrols,substantiveprocedures oracombinationofboth.

Inaddition,wereadallthefinancialandnon-financialinformationinthefinancialstatementsandlinkedIntegratedReporttoidentifymaterialinconsistencieswiththeauditedfinancialstatementsandtoidentify anyinformationthatisapparentlymateriallyincorrectbasedon,ormateriallyinconsistentwith,theknowledgeacquiredbyusinthecourseofperformingtheaudit. Ifwebecomeawareofanyapparentmaterialmisstatementsorinconsistenciesweconsider theimplicationsforourreport.

PricewaterhouseCoopers LLPChartered Accountants London

13April2017

a. ThemaintenanceandintegrityofTheCharteredInstituteofManagementAccountants(CIMA)websiteistheresponsibilityoftheCouncil;theworkcarriedoutbytheauditorsdoesnotinvolveconsiderationofthesemattersand,accordingly,theauditorsacceptnoresponsibilityforanychangesthatmayhaveoccurredtothefinancialstatementssincetheywereinitiallypresentedonthewebsite.

b. LegislationintheUnitedKingdomgoverningthepreparationanddisseminationoffinancialstatementsmaydifferfromlegislationinotherjurisdictions.


Consolidated statement of comprehensive income

Year ended 31 December Note £0002016 £000 £000

2015reclassified*

£000Income 2 56,660 54,161

Acquire (11,851) (11,611)Deepen (14,428) (13,334)Retain (12,440) (11,356)Fulfil (7,702) (6,756)Reputation and research (14,607) (12,959)Expenditure (61,028) (56,016)

Operating deficit before charities (4,368) (1,855)

Income/(expense)fromcharitabletrustsand other funds 65 (28)Total operating deficit (4,303) (1,883)

Taxation 4a 61 7

Deficit for the year (4,242) (1,876)

Other comprehensive incomeItems which will not be reclassified to net income

Actuarial(loss)/gainonpensionscheme 13b (8,080) 2,414 Items which may be reclassified to net income

Increase/(decrease)inforeign currencytranslationreserve 193 (275)Realisedgainoninvestmentdisposal (311) (254)Unrealisedgainoninvestmentrevaluation 762 287

Total other comprehensive (expense)/income (7,436) 2,172

Total comprehensive (expense)/income (11,678) 296

*SeeNote2

Resultsfortheyearareallderivedfromcontinuingoperations.

Thenotesonpages16to38formanintegralpartofthesefinancialstatements.


As at 31 December Note2016£000

2015£000

Non current assetsProperty,plantandequipment 5 5,726 6,873Intangible assets 6 7,103 5,033 Interestinotherinvestments 7 5,621 5,619 Interestinjointventure 8 – –

18,450 17,525 Current assets

Tradeandotherreceivables 9a 4,664 4,696 Cashandcashequivalents 9b 14,096 12,815 Interestinotherinvestments 9c – 2,093

18,760 19,604

Total assets 37,210 37,129

Funds Accumulated funds (7,429) 4,958 Fairvaluereserves 2,524 2,348 Foreigncurrencytranslationreserve (2,635) (2,828)Charitable trusts and other funds 2,766 2,426

(4,774) 6,904 Current liabilities

Tradeandotherpayables 10 9,119 4,932 Provisions 11 416 349 Subscriptionsandfeesreceivedinadvance 12 13,029 12,969

22,564 18,250 Non current liabilities

Provisions 11 446 439 Pensionschemeliability 13a 18,885 11,439 Other retirement obligations 13i 89 97

19,420 11,975

Total funds and liabilities 37,210 37,129


Thefinancialstatementsonpages12to38wereapprovedbytheCouncilon13April2017,andsignedon itsbehalfby:

Andrew Miskin FCMA, CGMA David Stanford FCMA, CGMA John Windle FCMA, CGMAPresident DeputyPresident ChiefFinancialOfficer

Consolidated balance sheet


Year ended 31 December Note

Accumulated funds£000

Fairvalue reserves

£000

Foreign currency

translation reserve

£000

Total before

charities£000

Charitable trusts

and other funds£000

Group total

£000Balance at 31 December 2014 4,392 2,224 (2,553) 4,063 2,545 6,608

Changes in funds for 2015Deficit for the year (1,848) – – (1,848) (28) (1,876)Other comprehensive income

Realisedlossoninvestmentdisposal – (254) – (254) – (254)Unrealisedgain/(loss)oninvestmentrevaluation 7,9c – 378 – 378 (91) 287Actuarial gain on pension scheme 13b 2,414 – – 2,414 – 2,414 Foreign exchange loss on translation – – (275) (275) – (275)

Total comprehensive income 566 124 (275) 415 (119) 296

Balance at 31 December 2015 4,958 2,348 (2,828) 4,478 2,426 6,904

Changes in funds for 2016Deficit for the year (4,307) – – (4,307) 65 (4,242)Other comprehensive income

Realisedlossoninvestmentdisposal – (311) – (311) – (311)Unrealisedgainoninvestmentrevaluation 7,9c – 487 – 487 275 762Actuarial loss on pension scheme 13b (8,080) – – (8,080) – (8,080)Foreign exchange gain on translation – – 193 193 – 193

Total comprehensive (expense)/income

(12,387) 176 193 (12,018) 340 (11,678)

Balance at 31 December 2016 (7,429) 2,524 (2,635) (7,540) 2,766 (4,774)


Consolidated statement of changes in funds


Year ended 31 December Note2016£000

2015£000

Cash flows from operating activitiesMember and student income 48,451 48,437Other income 6,368 4,725Paymentstosuppliers (29,840) (36,552)Paymentstoemployees (17,344) (15,568)Paymentsrelatingtotaxes (1,383) (1,936)Paymentsrelatingtopostretirementbenefits (4,186) (2,330)Paymentsrelatingtocharitableactivities (233) (156)

Cash generated from operating activities 1,833 (3,380)

Taxation – –

Net cash arising from operating activities 1,833 (3,380)

Cash flows from investing activitiesPurchaseofproperty,plantandequipment 5 (191) (5,221)Purchase of intangible assets 6 (3,636) (2,483)Purchaseofinvestments 7,8,9c (94) (20)Proceedsfromdisposalsofinvestments 2,895 1,709Investmentincome 320 241

Net cash used in investing activities (706) (5,774)

Net increase/(decrease) in cash and cash equivalents 1,127 (9,154)

Cashandcashequivalentsat1January 12,815 22,197

Effect of foreign exchange ratesChangeinforeigncurrencytranslationreserve 193 (275)Netexchangedifferencesonproperty,plantandequipment (39) 47

Cash and cash equivalents at 31 December 9b 14,096 12,815


Consolidated cash flow statement


1 SUMMARY OF ACCOUNTING POLICIESa Basis of preparation

CIMAisabodyincorporatedbyRoyalCharteranddomiciledintheUK.Thefinancialstatementsarepreparedon thegoingconcernbasis,underthehistoricalcostconvention,asmodifiedbytherevaluationoffreeholdpropertiesandinvestments,andinaccordancewithInternationalFinancialReportingStandards(IFRS)asadoptedbytheEuropeanUnionandwiththeIFRSInterpretationalsCommitteeinterpretations.Leaseholdpropertiesarerevaluedbyaqualifiedsurveyor,onadepreciatedreplacementcostbasis,everythreeyears,ormoreregularlyshouldmanagementconsiderthatthevaluehaschangedsignificantly.Investmentsarerevaluedatthebalancesheetdateinlinewiththefairvaluehierarchy.

Reclassification of 2015 amountsAsexplainedinNote2,prioryearexpenditurehasbeenreclassifiedtobetteralignspendwiththeelementofthebusinessmodelthatitsupports.Thereisnoimpactonthesurplusfor2015fromthisreclassification.

b Basis of consolidationTheconsolidatedgroupfinancialstatementscomprisethefinancialstatementsofCIMAandthewhollyownedsubsidiaryundertakings,charitabletrustsandotherfundsunderthecontrolofCIMA,togetherwithashareoftheresults,assetsandliabilitiesofjointlycontrolledentities(jointventures)usingtheequitymethodofaccounting,wheretheinvestmentiscarriedatcostpluspostacquisitionchangesintheshareofnetassetsofthejointventure,lessanyprovisionforimpairment.ControlisachievedwhereCIMAisexposed,orhasrights,tovariablereturnsfromitsinvolvementwiththeinvesteeandhastheabilitytoaffectthesereturnsthroughitspowerovertheinvestee.Ajointventureisanentityestablishedtoengageineconomicactivity,whichCIMAjointlycontrolswithitsfellowventurers.Lossesinexcessoftheconsolidatedinterestinjointventuresarenotrecognised,exceptwhereCIMAoritssubsidiarieshavemadeacommitmenttomakegoodthoselosses,andareincludedincreditorswheretheinvestmentisimpaired.Theconsolidatedgroupfinancialstatementscomprisethestatementsofcomprehensiveincome,balancesheetsandcashflowstatementsofCIMAanditsforeignoperationsasdetailedinNote16.

c Adoption of new and revised standardsThe following statements are effective and relevant in the current year:AmendmenttoIAS16Property,plantandequipment,andIAS38Intangibleassets,ondepreciationandamortisation(effective1January2016)Annualimprovements2014(effective1January2016)AmendmenttoIAS1Presentationoffinancialstatementsdisclosureinitiative(effective1January2016)The following statements are effective and not relevant in the current year:AmendmenttoIAS27Separatefinancialstatementsonequityaccounting(effective1January2016)AmendmenttoIFRS10Consolidatedfinancialstatements,andIAS28Investmentsinassociatesandjointventuresonapplyingtheconsolidationexemption(effective1January2016)IFRS14Regulatorydeferralaccounts(effective1January2016)AmendmenttoIAS16Property,plantandequipment,andIAS41Agricultureonbearerplans (effective1January2016)AmendmenttoIFRS11Jointarrangementsonacquisitionofaninterestinajointoperation (effective1January2016)

Notes to the consolidated financial statements


1 SUMMARY OF ACCOUNTING POLICIES continuedc Adoption of new and revised standards continued

The following statements may be relevant for future periods:AmendmenttoIAS7Presentationoffinancialstatementsdisclosureinitiative(effective1January2017)Amendment to IAS 12 Income taxes on recognition of deferred tax assets for unrealised losses (effective1January2017)IFRIC22Foreigncurrencytransactionsandadvanceconsideration(effective1January2018)IAS40Investmentpropertytransfersofinvestmentproperty(effective1January2018)AmendmenttoIFRS4‘Insurancecontracts’regardingtheimplementationofIFRS9,‘Financialinstruments’(effective1January2018)IFRS9Financialinstruments(effective1January2018)IFRS15Revenuefromcontractswithcustomers(effective1January2018)IFRS16Leases(effective1January2019)

d Income recognitionThemainincomestreamsarerecognisedasfollows:Memberandstudentsubscriptionsarerecognisedintheyearwhentheyfalldue,wherethereisnosignificantuncertaintyastocollectability.SubscriptionsandfeesreceivedinadvancerepresentfundspaidtoCIMAinthecurrentyear,butthatrelatetotheannualfeeswhichfalldue,andarerecognisedasincome,inthefollowingyear.Examfeesarerecognisedonthedateoftheexam.Exemptionfeesarerecognisedwheninvoiced.Goodsandservices:

CoursesandconferencesrevenuerepresentsincomeearnedfromthecombinationofcoursesandconferencesactivityandBPPProfessionalEducationLtdFinanceandTaxoperations.Magazinesalesandadvertisingarerecognisedinthemonthofpublication.Sponsorshipincomeisrecognisedwhentheeventoccurs.Charitabledonationsandincomearerecognisedwhentheyarereceived.

Financial:Interestisaccruedonadailybasis.DividendsfrominvestmentsarerecognisedwhenCIMA’srighttoreceivepaymentisestablished.


Notes to the consolidated financial statements continued

1 SUMMARY OF ACCOUNTING POLICIES continuede Expenditure recognition

Expenditurerelatedtoaspecificincomestreamisrecognisedinthesameperiodastheincome.Expenditurerelatedtoaspecificperiodoftimeorserviceisrecognisedinthatperiod.Goodsorservicesdelivered,forwhichtheinvoicehasnotbeenreceived,areaccruedforintheaccountingperiodinwhichtheyaredelivered.ExpenditureincurreddeliveringthecoreproductsorservicesofCIMAoritsongoingfunctionalactivityforwhichthereisnodirectrevenuebenefitisexpensedintheaccountingperiodinwhichthecommitmentwasmade.GiftaiddonationsmadebyCIMAtotheGeneralCharitableTrustarerecognisedwhenpaid.

f LeasesLeasesareclassifiedasfinanceleaseswheneverthetermsoftheleasetransfersubstantiallyalltherisksandrewardsofownershiptoCIMA.Allotherleasesareclassifiedasoperatingleasesandrentalpaymentsarechargedagainstincomeonastraightlinebasisoverthetermofthelease.

g TaxationCorporationtaxarisesonCIMA’stradingprofits,chargeablegainsandinvestmentincomelessanycharitabledonationsbywayofgiftaid.Aprovisionismadefordeferredtaxationtotheextentthatmaterialtimingdifferencesareexpectedtoreverseinfutureperiods.Noprovisionfordeferredtaxationisincludedinrespectof surplusesonrevaluationofpropertyandinvestments.

h InvestmentsInvestmentsarerecognisedatcostonthetradedate,andarerestatedonthereportingdateatfairvalue.Unrealisedgainsandlossesarerecogniseddirectlyinfairvaluereservesuntiltheinvestmentisdisposedoforisdeterminedtobeimpaired,atwhichtimethecumulativegainorloss,previouslyrecognisedinfairvaluereserves,isincludedinthenetsurplusordeficitfortheperiod.Incomeorexpensearisingonthetranslationofinvestmentsdenominatedinforeigncurrenciesisrecognisedaspartofthedeficitorsurplusfortheyear.

i Property, plant and equipmentFreeholdlandandbuildingsarecarriedatfairvalue,basedonvaluationsconductedeverythreeyears,withsubsequentadditionsatcost.Theyaredepreciatedat2%onastraightlinebasis.Leaseholdlandandbuildingsarecarriedatfairvalue,basedonvaluationsconductedeverythreeyears,withsubsequentadditionsatcost.Theyaredepreciatedonastraightlinebasisovertheperiodofoccupation.Leaseholdimprovementsarecarriedatcostanddepreciatedonastraightlinebasisovertheperiodofoccupation.Otherequipment,comprisingIThardware,iscarriedatcostanddepreciatedonastraightlinebasisatratesvaryingfrom20%to50%,dependingontheusefuleconomiclifeoftheequipment.Smallitemsoffurnitureand officeequipmentareexpensedintheyearofpurchase.CostincludesattributableirrecoverableVAT.

j Intangible assetsIntangibleassetscomprisecomputersoftwareandtrademarks;thesearestatedatcost.CostincludesattributableirrecoverableVAT.Amortisationischargedonastraightlinebasisovertheestimatedusefuleconomiclifeofthesoftware(betweentwoandfiveyears)andoverthedurationofthetrademark.ItisapportionedacrosstheelementsofvaluechainexpenditureasexplainedinNote2.


1 SUMMARY OF ACCOUNTING POLICIES continuedk Impairment

Ateachbalancesheetdatethecarryingamountsofnon-currentassetswithfinitelivesarereviewedtodeterminewhetherthereisanyindicationthatthoseassetshavesufferedanimpairmentloss.Ifanysuchindicationexists,therecoverableamountoftheassetisestimatedinordertodeterminetheextentoftheimpairmentloss.Iftherecoverableamountoftheassetisestimatedtobelessthanthecarryingamount,thecarryingamount isreducedtotherecoverableamount.Impairmentlossesarerecognisedintheconsolidatedstatementofcomprehensiveincome,unlesstheassetislandorbuildingscarriedatarevaluedamount,inwhichcase theimpairmentlossistreatedasadecreaseinthefairvaluereserve.Whereanimpairmentlosssubsequentlyreverses,thecarryingamountoftheassetisincreasedtotherevisedestimateoftherecoverableamount,butsothattheincreasedcarryingamountdoesnotexceedthecarryingamountthatwouldhavebeendeterminedhadnoimpairmentlossbeenrecognisedfortheassetinprioryears.A reversalofanimpairmentlossisrecognisedintheconsolidatedstatementofcomprehensiveincome,unlesstheassetiscarriedatarevaluedamount,inwhichcasethereversaloftheimpairmentlossistreatedasanincreaseinthefairvaluereserve.

l Trade and other receivablesTradeandotherreceivablesarestatedatoriginalinvoicevaluelessaprovisionfordoubtfuldebt.Therecoverabilityofdebtisreviewedonanongoingbasis.CIMAreviewsindicatorsofimpairmentonanongoingbasisand,wheresuchindicatorsexist,makesanestimateoftheassetsrecoverableamount.

m Trade and other payablesTradeandotherpayablesarerecognisedatamortisedcost.

n Cash and cash equivalentsCashandcashequivalentscomprisecashinhand,balanceswithbanksandfinancialinstitutions,creditcardreceiptsclearedandintransittoCIMA,andinvestmentsinmoneymarketinstrumentsrepresentingshortterm,highlyliquidinvestments,whicharereadilyconvertibletoknownamountsofcash.

o Retirement benefitsFordefinedbenefitplans,thecostofprovidingbenefitsisdeterminedusingtheprojectedcreditmethod, withvaluationsforthepurposesofIAS19beingcarriedoutateachbalancesheetdate.Pastservicecostisrecognisedimmediately,totheextentthatbenefitsarealreadyvested,andotherwiseisamortisedonastraightlinebasisovertheaverageperioduntiltheamendedbenefitsbecomevested.Theamountrecognisedintheconsolidatedbalancesheetrepresentsthepresentvalueofthedefinedbenefitobligation,reducedbythefairvalueofplanassets.Anyassetresultingfromthiscalculationislimitedtotheunrecognisedactuariallossesandpastservicecost,plusthepresentvalueofavailablefundsandreductions infuturecontributionstotheplan.Forthedefinedcontributionscheme,thecostrecognisedfortheperiodisthecontributionpayableinexchangeforservicesrenderedbyemployeesduringtheperiod.

p Foreign currenciesSterlingisthepresentationalcurrencyofCIMA.Transactionsincurrenciesotherthansterlingareinitiallyrecordedattheratesofexchangeprevailingonthedatesofthetransactions.Surplusesanddeficitsarisingonexchangeareincludedinthenetsurplusordeficitfortheperiod.Monetaryassetsandliabilitiesaretranslatedattheratesprevailingonthebalancesheetdate,includingnon-UKoperations.Onconsolidation,theincomeandexpenseitemsofthenon-UKoperationsaretranslatedattheaverageratesfortheperiod.Exchangedifferenceson thetranslationoftheassetsandliabilitiesofthenon-UKoperationshavebeentakentotheforeigncurrencytranslationreserve.



1 SUMMARY OF ACCOUNTING POLICIES continuedq Derivatives

CIMAusesderivativefinancialinstruments(derivatives)tohedgeitsexposuretoforeignexchangerisksarisingfromoperationalactivities.CIMAdoesnotholdorissuederivativesfortradingpurposes.However,derivativesthatdonotqualifyforhedgeaccountingareaccountedforastradinginstruments.Derivativesarerecognisedatfairvalue.Asthefinancialinstrumentsaredesignatedasfairvaluethroughprofitandloss,thegainorlossonre-measurementtofairvalueisrecognisedimmediatelyintheconsolidatedstatementofcomprehensiveincome.

r Sources of estimation and uncertaintyThepreparationofthefinancialstatementsrequiresCIMAtomakeestimates,judgementsandassumptionsthat affectthereportedamountsofassets,liabilities,revenuesandexpensesandrelateddisclosureofcontingentassetsandliabilities.CIMAbasesitsestimatesonhistoricalexperienceandvariousotherassumptionsthatitbelievesarereasonableunderthecircumstances,theresultsofwhichformthebasisformakingjudgementsaboutthecarryingvalueofassetsandliabilitiesthatarenotreadilyapparentfromothersources.Actualresults maydifferfromthoseestimatesunderdifferentassumptionsorconditions.

s Significant judgementsCIMAbelievesthatthemostsignificantcriticaljudgementareaintheapplicationofitsaccountingpoliciesisits deferredbenefitpensionschemeassumptions,whicharesetoutinNote13.Theothersignificantjudgementisthelevelofprovisionfordoubtfuldebts,assetoutinNote9a.

t FundsCIMAmaintainsalevelofreservestoprotectagainstashortfallinincomeshouldeconomicormarketforcescauseasignificantdeclineindemandforitsproductsandservicesforoneyear,ortoitsabilitytoearnareturnonitsinvestedfunds.Mostinvestmentprojectsarefundedoutofcurrentincome,howeveraccumulatedreservesmaybeusedtofundsignificantstrategicprojects,forexamplethecreationoftheAssociationandGlobalManagementAccountingPrinciples.FairvaluereservesrepresentthemarketvalueofCIMA’sinvestmentsandpropertyinexcessofthehistoriccost.Theforeigncurrencytranslationreserverepresentsexchangedifferencesarisingonthetranslationoftheassetsandliabilitiesofthenon-UKoperations.CharitabletrustreservesrepresentthetotalreservesrelatingtotheBenevolentFundandtheAnthonyHowittLectureTrust.Whiletheaccumulatedfundsarenegativethisyear,drivenbythePensionSchemevaluationassumptions,CIMA’sbusinessmodelremainsstrongandrelevanttothemarket,withagrowingmembershippopulationunderpinnedbyhighretentionlevelsgeneratingsustainablefutureincome.TheorganisationiscommittedtostandingbehindthePensionSchemeandanagreedplanisinplacetosupportandmanagethisoverthecomingyears.Inadditiontothis,thecombinedresourcesoftheAssociationwillprovideastrongerplatformforthedeliveryofthemanagementaccountingstrategytogrowthemembershippipeline.


2 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

2016£000

2015reclassified

£000IncomeMember and student subscriptions 34,957 34,681Examinations and exemptions 13,434 12,484Goodsandservices 6,225 5,119Financial 2,044 1,877Total income 56,660 54,161

ExpenditureAcquire (11,851) (11,611)Deepen (14,428) (13,334)Retain (12,440) (11,356)Fulfil (7,702) (6,756)Reputation and research (14,607) (12,959)Total expenditure (61,028) (56,016)

Income/(expenditure)fromcharitabletrustsandotherfunds 65 (28)Taxation 61 7

Deficit for the year (4,242) (1,876)

DuringtheyearCIMAimplementedanewenterpriseresourceplanning(ERP)system,andtooktheopportunityto updatethechartofaccounts.Asaresult,someexpenditurehasbeenreclassifiedtomoreaccuratelyreflectthebenefitsitdrives,andthecomparativesinthesefinancialstatementshavebeenreclassifiedtoconformto theupdatedchartofaccounts.Thisreclassificationislimitedtoexpenditurewithintheconsolidatedstatement ofcomprehensiveincome.ThemostsignificantchangeswerethemoveoftheGlobalCorporateRelationsteamfromreputationandresearchtoacquire,andthemoveoftheProfessionalStandardsfunctionfromreputationandresearchtoretain.Thechangesreflectthehowourbusinessmodelcontinuestoevolve,andthewaythatoperational objectivesfitintothatmodel.

AcquirereferstothecostofattractingnewstudentstoCIMA.Itincludesthecostsofdirectadvertisingandpromotion,aswellasbuildingrelationshipswithschools,collegesandemployers,whocanadvocateonCIMA’sbehalf.

Deepenisaboutstrengtheningourrelationshipwithstudents,supportingthemthroughtheexaminations,andencouragingthemtoachievemembership.

Retainisthecostofremainingengagedwithourmembers,anddeliveringthebenefitstheywantfromCIMA.In particular,itincludesensuringCPDservicesremainrelevantandavailabletosupportongoinglifelonglearning.

FulfiliswhereweaimtoinstilprideinCIMA,theCGMAdesignation,andmanagementaccountingasawhole,among allourstakeholders,includingthecostoftransformationalstrategicprojects.

CIMA’sreputationforhighqualityresearchinthescienceofmanagementaccountingunderpinseverypartofthevaluechain.Itattractsstudents,persuadesmemberstostayandgrowwithus,andcementsprideintheCIMAbrandthatleadstopositiveadvocacy.Itshowcasestherelevanceofthequalificationtoallourstakeholders.

AsignificantpartofCIMA’scostbaseisoperationalandsupportsallareasofthebusiness,e.g.officerent. Thesecostsareapportionedevenlyacrosstheelementsofthevaluechain.



3 OPERATING DEFICITa The operating deficit has been arrived at after charging:

2016£000

2015£000

Net foreign exchange gain 294 22Researchanddevelopmentcosts 957 586Depreciationofownedproperty,plantandequipment 1,265 867Amortisation of intangible assets 1,504 1,037Gainondisposalofinvestments 423 298(Loss)/gainondisposalofnoncurrentassets (155) 35Operating lease cost 2,201 2,210

Inaccordancewitharticle3(c)oftheRoyalCharter,noCouncilmemberwasremuneratedduringtheyear,exceptunderByelaw34(b)(examiners’fees).NoCouncilmemberbenefitedpersonallyfromanycontractwithCIMA,andcontractswithorganisationswithwhichCouncilmemberswereconnectedarenotofamaterialnature.ThetotalreimbursementofexpensesincurredbyCouncilmembersonCIMAbusinesswas£1.2m(2015:£1.3m).

b Fees paid to external auditorsPwCreplacedChantreyVellacottDFKinJune2015asthegroupauditor.PwCandChantreyVellacottDKF(includingDFKnetworkfirms)providedallaudit,assurance,taxandadvisoryservicesintheUK,andtosome nonUKoffices.

2016£000

2015£000

External auditPwC

UK 235 153Non UK 34 54

ChantreyVellacottDFKandDFKnetworkfirmsUK – –Non UK – 18

269 225Tax and advisory servicesPwC

UK 316 189Non UK – –

ChantreyVellacottDFKandDFKnetworkfirmsUK – 19Non UK – –

316 208Total fees paid to external auditors 585 433


3 OPERATING DEFICIT continuedc Employees

2016£000

2015£000

Salariesandwages(includingtemporarystaffandtheSLT) 17,344 15,568National insurance 1,383 1,936Definedcontributionscheme 2,877 1,176Definedbenefitscheme 667 731

22,271 19,411

TheyearendnumberofUKbasedemployeeswas269(2015:258),andthenumberofemployeesoutsideof theUKwas189(2015:201).Allemployeesworkinadministrativeroles.

d Senior Leadership Team (SLT)RemunerationpayabletomembersoftheSLTfortheyearis:

Salary £000

Performance related pay

£000

Pension contribution

£000

Total 2016 £000

Total 2015 £000

Chiefexecutive Note i 220 35 18 273 308Chiefexecutive Note ii 88 – 13 101 –Managing director Note ii 97 21 15 133 188Chieffinancialofficer 155 19 26 200 174Executivevicepresident–academics 138 17 26 181 160Executivevicepresident–externalaffairs 127 16 19 162 141Executivevicepresident–professionalstandards and conduct 131 16 29 176 154Executivevicepresident–marketingand sales 128 16 8 152 131Managing director – Europe, Africa and Asia Note iii 58 – 9 67 –

1,142 140 163 1,445 1,256

i Theoutgoingchiefexecutiveresignedfromthispositionon31July2016ii Themanagingdirectorwaspromotedtochiefexecutiveon1August2016iii Managingdirector–Europe,AfricaandAsiaisanewrolefrom1August2016



4 TAXATIONa Tax credit for the year

2016£000

2015£000

Current taxCurrenttaxpayableondeficitfortheyear – –Total current tax – –

Deferred taxCurrentyear (68) –Effect of changes in tax rates 7 (7)Total deferred tax (61) (7)Total tax credit per consolidated statement of comprehensive income (61) (7)

b Factors affecting the tax credit for the year2016 £000

2015 £000

Deficitonordinaryactivitiesbeforetax (4,303) (1,883)TaxondeficitonordinaryactivitiesatthestandardUKrateof20%(2015:20.25%) (861) (381)Effectsof:

Net income not taxable 382 339Expenses not deductible 20 –Chargeable gains 26 42Utilisation of tax losses 365 –Tax rate changes 7 (7)

Current tax credit for the year (61) (7)

Notaxliabilitiesariseundertheactivitiesofthecharitabletrusts.

c Deferred tax provision2016 £000

2015 £000

Provisionatthestartoftheyear 61 72Impactofratechangeonprioryear – (4)Creditfortheyear (61) (7)Provision at the end of the year – 61


5 PROPERTY, PLANT AND EQUIPMENT

Freehold landand building

(atvaluation)£000

Leasehold land

and building(atvaluation)

£000

Leaseholdimprovements

(atcost)£000

Otherequipment

(atcost)£000

Total£000

Net book valueAt 31 December 2014 969 254 643 744 2,016

Cost or valuationAt1January2015 1,011 304 5,080 1,656 8,051Additions – – 3,304 1,936 5,240Disposals – – (4,226) (551) (4,777)Revaluation 13 – – – 13Transferfromsoftware – – – 62 62Transfertosoftware – – – (94) (94)Foreign exchange – – (26) (26) (52)At 31 December 2015 1,024 304 4,132 2,983 8,443

Accumulated depreciationAt1January2015 (42) (50) (4,437) (912) (5,441)Chargefortheyear (25) (32) (386) (592) (1,035)Eliminated on disposals – – 4,177 560 4,737Revaluation 62 74 – – 136Transferfromsoftware – – – (61) (61)Transfertosoftware – – – 89 89Foreign exchange – – (3) 8 5At 31 December 2015 (5) (8) (649) (908) (1,570)

Net book valueAt 31 December 2015 1,019 296 3,483 2,075 6,873

Cost or valuationAt1January2016 1,024 304 4,132 2,983 8,443Additions – – 66 106 172Disposals – – (183) (315) (498)Transferfromsoftware – – – 14 14Foreign exchange – – 58 12 70At 31 December 2016 1,024 304 4,073 2,800 8,201

Accumulated depreciationAt1January2016 (5) (8) (649) (908) (1,570)Chargefortheyear (20) (31) (369) (845) (1,265)Eliminated on disposals – – 156 240 396Transferfromsoftware – – – (5) (5)Foreign exchange – – (25) (6) (31)At 31 December 2016 (25) (39) (887) (1,524) (2,475)

Net book valueAt 31 December 2016 999 265 3,186 1,276 5,726

Includedaboveareassetsunderconstructionatacostof£2k(2015:£97k).Astheseassetsareunderconstruction,depreciationhasnotstartedyet.

FreeholdandleaseholdlandandbuildingsrefertopropertyinSriLanka.LeaseholdimprovementsincludeCIMA’scorporatecentreofficesintheHeliconbuilding,Londonandalsonon-UKoffices.



5 PROPERTY, PLANT AND EQUIPMENT continuedThevaluationofthefreeholdandleaseholdlandandbuildinginSriLankawaspreparedbyanindependentvaluationexpertonthebasisofdepreciatedreplacementcostat30October2015.Thevaluationsegregates therespectivevaluesofthefreeholdandleaseholdlandandbuildings.

Onahistoricalcostbasis,therevaluedfreeholdandleaseholdlandandbuildingsinSriLankawouldhavebeenincludedatacostof£670klessaccumulateddepreciationof£290k.

6 INTANGIBLE ASSETSComputer

software £000

Trademarks £000

Total £000

Net book valueAt 31 December 2014 2,590 993 3,583

CostAt1January2015 9,215 1,079 10,294Additions 2,338 145 2,483Disposals (665) – (665)Transferfromequipment 94 – 94Transfertoequipment (62) – (62)At 31 December 2015 10,920 1,224 12,144

Accumulated amortisationAt1January2015 (6,625) (86) (6,711)Chargefortheyear (974) (63) (1,037)Eliminated on disposals 665 – 665Transferfromequipment (89) – (89)Transfertoequipment 61 – 61At 31 December 2015 (6,962) (149) (7,111)

Net book valueAt 31 December 2015 3,958 1,075 5,033

CostAt1January2016 10,920 1,224 12,144Additions 3,472 164 3,636Transfertoequipment (14) – (14)Disposals (900) – (900)At 31 December 2016 13,478 1,388 14,866

Accumulated amortisationAt1January2016 (6,962) (149) (7,111)Chargefortheyear (1,300) (204) (1,504)Transfertoequipment 5 – 5Eliminated on disposals 847 – 847At 31 December 2016 (7,410) (353) (7,763)

Net book valueAt 31 December 2016 6,068 1,035 7,103

Includedaboveareassetsunderconstructionatacostof£2,822k(2015:£1,408k).Astheseareassetsunderconstruction,depreciationhasnotstartedyet.


6 INTANGIBLE ASSETS continuedIndividually material intangible assets

Net book value £000

Remaining useful life

Enterpriseresourceplanningsystem 842 5yearsCustomerrelationshipmanagement(CRM)system 441 1–4yearsGlobal Management Accounting Principles assessment tool 198 3yearsCIMAconnect 93 1years

TheCRMsystemwasinitiallyintroducedin2002andhasbeenaddedtoonanannualbasis.Individualelementsaredepreciatedoverfiveyears.Theremainingusefulliferepresentstherangeofassetsremaining.

7 INTEREST IN OTHER INVESTMENTSMarketable securities

heldby CIMA £000

heldbyCharitable trusts and

other funds £000

Total £000

At 31 December 2014 at fair value 3,754 2,368 6,122Historical cost 2,767 2,015 4,782At 1 January 2015 at fair value 3,754 2,368 6,122

Additionsoflistedinvestmentsatcost 6 – 6Disposalsoflistedinvestmentsatopeningfairvalue (722) – (722)Unrealisedgainonrevaluationoflistedinvestments 304 (91) 213At 31 December 2015 at fair value 3,342 2,277 5,619

Historical cost 2,438 2,015 4,453At 1 January 2016 at fair value 3,342 2,277 5,619

Additionsoflistedinvestmentsatcost 42 – 42Disposalsoflistedinvestmentsatopeningfairvalue (802) – (802)Unrealisedgainonrevaluationoflistedinvestments 487 275 762At 31 December 2016 at fair value 3,069 2,552 5,621

Historical cost 1,591 2,015 3,606

MarketablesecuritiescompriseunitsinfundsmanagedbySchroderandCo.Limited.Thesefundsarerevalued atthebalancesheetdatetomarketquotedprices.Investmentsareclassifiedasnoncurrentunlesstheyareexpectedtoberealisedwithinoneyear.

The unit funds are invested in the following asset classes2016 £000

2015 £000

Equities 3,529 3,638Multi asset funds 2,091 1,905Cash 1 76

5,621 5,619

The unit funds are invested in the following currencies2016 £000

2015 £000

Sterling 2,552 2,280US Dollar 3,069 3,339

5,621 5,619



8 INTEREST IN JOINT VENTUREOn1January2012,CIMAformedajointventurewiththeAmericanInstituteofCertifiedPublicAccountants(AICPA),calledtheAssociationofInternationalCertifiedProfessionalAccountants.On31January2012,thejointventurelaunchedadesignation–CharteredGlobalManagementAccountant(CGMA)–whichisavailabletoallCIMAmembersandAICPAmembersworkinginbusiness.

ThejointventurewasregisteredasaVereininSwitzerland.In2016,thejointventureincurredacostofUSD130kdueto thecostofregistrationandprotectionoftheCGMAdesignationinanumberofcountries,andtheCIMAgroupinvested£52kasitsshareofthesecosts.TheVereinhasnosourceofrevenue,andso,asinpreviousyears,theinvestmentwasimmediatelyfullyimpaired.

In2016,CIMAandAICPAmembersvotedtofurtherstrengthentherelationship.Tothisend,thejointventure isintheprocessofbeingwoundup.Newentitieshavebeenincorporated,andthroughthisnewstructure, from1January2017,CIMAandtheAICPAhavealignedtheirstrategy,managementandoperations.

ThenewstructuretakestheformofanotforprofitUSbasedorganisation,alsonamedtheAssociationofInternationalCertifiedProfessionalAccountants(the‘AssociationUS’),andaUKbasedsubsidiary–acompanylimitedbyguarantee–againwiththesamename(the‘AssociationUK’),togethertheAssociation.

From1January2017,CIMA(andtheAICPA)transferreditsemployeesandthemajorityofitsassetsand liabilities(butnottheCIMAPensionandAssuranceScheme)totheAssociation,toenableittomanageits statedobjectives.MemberandstudentsubscriptionincomewillcontinuetobepayabletoCIMA,andafterfulfillingobligationstothepensionscheme,willbepaidtotheAssociation.

Total £000

At 31 December 2014 at fair value –Historical cost 389At 1 January 2015 at fair value –

Additionalinvestmentinjointventureatcost 14Impairmentofadditionalinvestmentinjointventure (14)At 31 December 2015 at fair value –

Historical cost 403At 1 January 2016 at fair value –

Additionalinvestmentinjointventureatcost 52Impairmentofadditionalinvestmentinjointventure (52)Disposalofinvestmentinjointventure –At 31 December 2016 at fair value –

Historical cost –

9 CURRENT ASSETSTheCouncilconsidersthatthecarryingamountsoftheseassetsareapproximatetotheirfairvalues.

a Trade and other receivables comprise:2016 £000

2015 £000

Tradereceivables 3,169 4,057Prepayments 1,338 565Otherreceivables 157 74

4,664 4,696

Theaveragecreditperiodtakenontradereceivablesis30days(2015:31days).Anallowanceof£269khasbeenmadeinrespectofdoubtfultradereceivables(2015:£333k).


9 CURRENT ASSETS continuedb Cash and cash equivalents comprise:

2016 £000

2015 £000

Cash on hand and at bank 11,577 9,760Credit card receipts in transit 2,519 3,055

14,096 12,815

c Interest in other investmentsTotal £000

At 31 December 2014 at fair value 3,019Historical cost –At 1 January 2015 at fair value 3,019

Additionsoflistedinvestmentsatcost –Disposalsoflistedinvestmentsatopeningfairvalue (1,000)Unrealisedgainonrevaluationoflistedinvestments 74At 31 December 2015 at fair value 2,093

Historical cost 2,032At 1 January 2016 at fair value 2,093

Disposalsoflistedinvestmentsatopeningfairvalue (2,093)At 31 December 2016 at fair value –

Historical cost –

ThesecomprisemarketablesecuritiesunitsinamultiassetfundmanagedbySchroderandCo.Limited.Thisfundisrevaluedatthebalancesheetdatetomarketquotedprices.CIMA’slevelofinvestmentinthefundismanagedaspartofitsshorttermworkingcapitalplanning,andassuchtheyareclassifiedascurrentassets.

10 TRADE AND OTHER PAYABLESTheCouncilconsidersthatthecarryingamountsoftheseliabilitiesareapproximatetotheirfairvalues.

Tradeandotherpayablescomprise:

2016 £000

2015 £000

Tradepayablesandaccruals 9,038 4,733Corporationtaxpayable 6 66Othertaxesandsocialsecuritycosts 75 133

9,119 4,932

11 PROVISIONSDilapidations

£000Tax

£000Other£000

Total£000

At 31 December 2014 411 1,250 502 2,163Utilised – (880) (254) (1,134)Released – (370) (139) (509)Provided 28 – 240 268At 31 December 2015 439 – 349 788Utilised – – (339) (339)Released – – (10) (10)Provided 7 – 416 423At 31 December 2016 446 – 416 862

Oftheprovisionsheldatyearend,£416k(2015:£349k)iscurrentand£446k(2015:£439k)isnoncurrent.



12 SUBSCRIPTIONS AND FEES RECEIVED IN ADVANCEThisprimarilyrepresents2017subscriptionsreceivedin2016.Theyaretreatedasdeferredincome,and willbe releasedtothestatementofcomprehensiveincomein2017inlinewiththesubscriptionperiod.

13 RETIREMENT BENEFITSCIMA sponsors The Chartered Institute of Management Accountants Pension and Assurance Scheme (the‘Scheme’),afundeddefinedbenefitpensionschemeintheUK.TheSchemeisadministeredwithinatrustwhichis legallyseparatefromCIMA.TrusteesareappointedbybothCIMAandtheScheme’smembershipandactintheinterestoftheschemeandallrelevantstakeholders,includingthemembersandCIMA.TheTrusteesarealsoresponsiblefortheinvestmentoftheScheme’sassets.

ThisSchemeprovidespensionsandlumpsumstomembersonretirementandtotheirdependantsondeath.Memberswholeaveservicebeforeretirementareentitledtoadeferredpension.TheSchemeclosedtonewmembersin2002,andtoaccrualofbenefitsin2012.

TheresponsibilityformakinggoodanydeficitwithintheSchemelieswithCIMAandthisintroducesanumberofrisksforCIMA.Themajorrisksare:interestraterisk,inflationrisk,investmentrisk,andlongevityrisk.CIMAandtheTrusteesareawareoftheserisksandmanagethemthroughappropriateinvestmentandfundingstrategies.TheTrusteesmanagegovernanceandoperationalrisksthroughanumberofinternalcontrolpolicies,including ariskregister.

TheSchemeissubjecttoregularactuarialvaluations,whichareusuallycarriedouteverythreeyears.Anactuarial valuationwascarriedoutat1April2015.Theseactuarialvaluationsarecarriedoutinaccordancewiththe requirementsofthePensionsAct2004andsoincludedeliberatemarginsforprudence.Thiscontrastswiththese accountingdisclosures,whicharedeterminedusingbestestimateassumptions.

Theresultsoftheformalactuarialvaluationasat1April2015havebeenprojectedto31December2016by aqualifiedindependentactuary.ThefiguresinthefollowingdisclosureweremeasuredusingtheProjectedUnitMethod.

Followingthe2012valuation,CIMAandtheSchemeagreedaplantoreducetheliabilitytozerooverthetenyearsto2023.ThisisthroughadditionalcontributionsfromCIMAandexpectedinvestmentreturnsontheScheme’sassets.InthecurrentyearCIMA’scontributionsamountedto£1,301k(2015:£1,168k).

GoingforwardtheSchemewillremaininCIMA,while,asexplainedinNote8,themajorityofotherassets andliabilitieswillbetransferredtotheAssociation.TheSchemewillhavefirstcallonmemberandstudentsubscriptionincometoensureitcancontinuetomeetitsobligations.Thishasbeenfullyagreedbetween theSchemeTrusteesandtheCouncil.

a Amounts recognised in the consolidated balance sheet2016 £000

2015 £000

2014 £000

PresentvalueofSchemeliabilities (58,841) (47,253) (50,388)FairvalueofSchemeassets 39,956 35,814 36,098Net amount recognised at year end (18,885) (11,439) (14,290)

AllSchemeassetsarevaluedataquotedmarketprice.

b Amounts recognised in the consolidated statement of comprehensive incomeThecurrentandpastservicecosts,settlementsandcurtailments,togetherwiththenetinterestexpensefortheyearareincludedintheemployeebenefitsexpenseintheconsolidatedstatementofcomprehensiveincome.Remeasurementsofthenetdefinedbenefitliabilityareincludedinothercomprehensiveincome.


13 RETIREMENT BENEFITS continuedb Amounts recognised in the consolidated statement of comprehensive income continued

2016 £000

2015 £000

Service costAdministration expenses 258 234Net interest expense 409 497

Charge recognised in the consolidated statement of comprehensive income 667 731Remeasurements of the net liability:

ReturnonSchemeassets(excludingamountincludedininterestexpense) (5,032) 1,427Loss/(gain)arisingfromchangesinfinancialassumptions 13,460 (509)Gain arising from changes in demographic assumptions – (1,662)Experience gain (348) (1,670)

Charge/(gain) recorded in other comprehensive income 8,080 (2,414)Total defined benefit cost/(gain) 8,747 (1,683)

c The principal actuarial assumptions used2016

%2015

%Liabilitydiscountrate 2.65 3.75InflationassumptionRPI 3.45 3.30InflationassumptionCPI 2.45 2.30Revaluation of deferred pensions

Inservicedeferreds 3.45 3.30Deferreds 2.45 2.30

Increases for pensions in paymentBenefitsaccruedpriorto1April1997 3.00 3.00Benefitsaccruedpriorto1April1997to1April2004 3.65 3.55Benefitsaccruedafter1April2004 3.40 3.30

Proportionofemployeescommutingpensionforcash all members commute all members commute2.25timestheirpension 2.25timestheirpension

atretirementonafixedcommutationfactorof15:1

atretirementonafixedcommutationfactorof15:1

Mortalityassumption–preretirement Light SAPS S2PxA Light SAPS S2PxACMI 2014 CMI 2014

(longtermtrendof1.5%) (longtermtrendof1.5%)Mortalityassumption–malepostretirement Light SAPS S2PMA Light SAPS S2PMA

CMI 2014 CMI 2014(longtermtrendof1.5%) (longtermtrendof1.5%)

Mortalityassumption–femalepostretirement Light SAPS S2PFA Light SAPS S2PFACMI 2014 CMI 2014

(longtermtrendof1.5%) (longtermtrendof1.5%)Future expected lifetime of current pensioner at age 65

Maleaged65atyearend 89.00 88.90Femaleaged65atyearend 90.20 90.10

Future expected lifetime of future pensioner at age 65Maleaged45atyearend 91.00 90.90Femaleaged45atyearend 92.50 92.40



13 RETIREMENT BENEFITS continuedc The principal actuarial assumptions used continued

ThechoiceofassumptionsistheresponsibilityoftheCouncil,andtheyareagreedwiththeactuary.Theassumptionschosenarethemostappropriateestimatesfromarangeofpossibleactuarialassumptions,which,duetothetimescalecovered,maynotnecessarilybeborneoutinpractice.

d Reconciliation of Scheme assets and liabilitiesLiabilities

£000Assets

£000Total £000

At 1 January 2015 (50,388) 36,098 (14,290)Interestincome/(expense) (1,794) 1,297 (497)Administration expenses – (234) (234)Cost recognised in the statement of comprehensive income (1,794) 1,063 (731)Actuarialgainsandlossesarisinginchangesinfinancialassumptions 509 – 509Actuarial gains and losses arising in changes in demographic assumptions 1,662 – 1,662Other experience items 1,670 – 1,670Returnonassets(excludingamountincludedinnetinterestexpense) – (1,427) (1,427)Remeasurement effects recognised in other comprehensive income 3,841 (1,427) 2,414Contributions from CIMA – 1,168 1,168Benefitspaid 1,088 (1,088) –Net cash 1,088 80 1,168At 31 December 2015 (47,253) 35,814 (11,439)Interestincome/(expense) (1,711) 1,302 (409)Administration expenses – (258) (258)Cost recognised in the statement of comprehensive income (1,711) 1,044 (667)Actuarialgainsandlossesarisinginchangesinfinancialassumptions (13,460) – (13,460)Other experience items 348 – 348Returnonassets(excludingamountincludedinnetinterestexpense) – 5,032 5,032Remeasurement effects recognised in other comprehensive income (13,112) 5,032 (8,080)Contributions from CIMA – 1,301 1,301Benefitspaid 3,235 (3,235) –Net cash 3,235 (1,934) 1,301At 31 December 2016 (58,841) 39,956 (18,885)

e Split of the Scheme’s liabilities by category of membership2016 £000

2015 £000

Activemembers 14,277 10,669Deferred pensioners 26,996 21,160Pensionsinpayment 17,568 15,424

58,841 47,253AveragedurationoftheScheme’sliabilitiesattheendoftheyear 21years 21years


13 RETIREMENT BENEFITS continuedf The major categories of Scheme assets are as follows

2016 £000

2015 £000

Return seekingUKequities 6,520 5,572Overseasequities 8,235 7,178Hedge funds 7,675 7,075

Total return seeking 22,430 19,825Debt instruments

Corporates 15,099 13,627Total debt instruments 15,099 13,627Other

Property 2,245 2,135Cash 182 227

Total market value of assets 39,956 35,814

TheSchemehasnoinvestmentsinCIMAorinpropertyoccupiedbyCIMA.

CIMAexpectstocontribute£1,190ktotheSchemeduringtheyearending31December2017inadditiontotheexpensesincurredovertheyear.

g Sensitivity of the liability value to changes in the principal assumptionsIfthediscountratewas0.1%higher(lower),theSchemeliabilitieswoulddecreaseby£1,340k(increaseby£1,380k),ifalltheotherassumptionsremainedunchanged.

Iftheinflationassumptionwas0.1%higher(lower),theSchemeliabilitieswouldincreaseby£960k(decreaseby£940k).Inthiscalculationallassumptionsrelatedtotheinflationassumptionhavebeenappropriatelyadjusted,thatisthesalary,deferredpension,andpensioninpaymentincreases.Theotherassumptionsremainunchanged.

Iflifeexpectanciesweretoincrease(decrease)byoneyear,theSchemeliabilitieswouldincreaseby£2,700k(decreaseby£2,600k),ifalltheotherassumptionsremainedunchanged.

Ifmemberswereassumednottocommuteanypensionforcashatretirement,theSchemeliabilitieswouldincreaseby£5,100k,ifalltheotherassumptionsremainedunchanged.

ThesesensitivitieshavebeencalculatedtoshowthemovementintheSchemeinisolation,andassumingnootherchangesinmarketconditionsattheaccountingdate.Thisisunlikelyinpractice;forexample,achange indiscountrateisunlikelytooccurwithoutanymovementinthevalueoftheassetsheldbytheScheme.

h Other retirement obligationsAprovisionof£89khasbeenmadeintheCIMASriLankaentityforretirementgratuitiesinconformitywithSLAS16/GratuityActNo.12of1983forallemployeeswhohavecompletedoneyearofservice,andisrecognisedasanexpenseintheperiodduringwhichtheirservicesarerenderedinaccordancewithSLAS16.

14 COMMITMENTS Property rentals

Atthebalancesheetdate,CIMAhadoutstandingcommitmentsforfutureminimumleasepayments,undernoncancellableoperatingleases,whichfalldueasfollows:

£000Notlaterthanoneyear 1,851Laterthanoneyear,andnotlaterthanfiveyears 5,531Laterthanfiveyears 2,991

TheleasecommitmentfortheHeliconistenyearstoSeptember2024,witharentreviewin2019.



15 FINANCIAL INSTRUMENTSCIMA’sprincipalfinancialinstrumentscomprisemarketablesecuritiesandcharitabletrustsandotherfunds.Themainpurposeofthesefinancialinstrumentsistoraisefinanceforthegroup’soperationsincludingtheoperationsofitscontrolledcharities.Thegrouphasvariousotherfinancialinstrumentssuchastradereceivables,tradepayablesandaccrualsthatarisedirectlyfromitsoperations.At31December2016andat31December2015 thegrouphadnosignificantderivatives.Foreigncurrencyexchangecontractsarefurtherdiscussedinsectiondbelow.Themainfinancialrisksforthegrouparecreditrisk,liquidityrisk,currencyriskandinvestmentrisk.

a RisksCredit riskTheriskoncashbalances,depositsandavailableforsaleinvestmentsismanagedinariskaversemanner,beingheldwithUKclearingbankswithacreditratingofatleastA.Amaximumof£5mmaybeinvestedperbank.Thetradecreditriskismainlyattributabletosubscriptionandexamfeeincome.Thereisnoconcentrationofriskinthisarea,asincomeisdiversifiedoveralargenumberofmembersandstudents.

Currency riskCIMA operates in a number of countries, has trade commitments in a number of currencies and, therefore, has someexposuretocurrencymovements.Incomeislargelysterlingdenominated,whilenon-sterlingexpenditureaccountsfor22%oftotalexpenditure.CIMAcontinuestoreviewcurrencyriskonaregularbasisandwilltakeactiontohedgeriskasappropriate.SeeNote15dforasummaryofhedgesinplaceatyearend.

Investment riskInvestmentincome,includinggainsondisposals,roseby£204kfrom£539kto£743k.Budgetsareprepared onaprudentbasisandincomefrominvestmentsisnotreliedonforCIMA’songoingactivities.Investmentsarereviewedonaregularbasis.A10%increaseinfairvalueatyearendwouldresultinariseof£562kinthevalueofinvestmentsandacorrespondingriseinthefairvaluereserve;adecreaseof10%wouldresultinafallof£562kinthevalueofinvestments,andacorrespondingfallinthefairvaluereserve.

Liquidity riskCIMA’sbusinessmodel,withsubscriptionfeesfallingdueon1Januaryandexaminationfeesbeingduebeforeexameventcommitmentsaremade,resultsinworkingcapitalrequirementsbeingfullyfundedinadvance.ThisresultsinahighproportionofCIMA’sassetbasebeingcashondeposit.Thesedepositsareactivelymanagedtoensurethatworkingcapitalrequirementsaremetatalltimes.

Thetotalgrosscontractualundiscountedcashflowsoffinancialliabilitiesfalldueasfollows.

31 December 2016

On demand or within

1 year £000

1-2 years £000

2-5 years £000

More than 5 years

£000Total £000

Tradeandotherpayables (9,119) – – – (9,119)Provisions (416) – – (446) (862)

(9,535) – – (446) (9,981)

31 December 2015

On demand orwithin

1year £000

1-2years £000

2-5years £000

More than 5years

£000Total £000

Tradeandotherpayables (4,932) – – – (4,932)Provisions (349) – – (439) (788)

(5,281) – – (439) (5,720)


15 FINANCIAL INSTRUMENTS continuedb Summary of financial instruments

31 December 2016

Loans and receivables

£000

Loans at amortised

cost £000

Available for sale assets

£000Total £000

AssetsNon current

Marketable securities – – 3,069 3,069Charitable trust funds – – 2,552 2,552Total – – 5,621 5,621

CurrentMarketable securities – – – –Tradeandotherreceivables 4,664 – – 4,664Cashandcashequivalents 14,096 – – 14,096Total 18,760 – – 18,760

LiabilitiesCurrent

Tradeandotherpayables – (9,119) – (9,119)Provisions – (416) – (416)Total – (9,535) – (9,535)

Non currentProvisions – (446) – (446)Total – (446) – (446)

Net financial assets/(liabilities) 18,760 (9,981) 5,621 14,400

31 December 2015

Loans and receivables

£000

Loans at amortised

cost £000

Availableforsale assets

£000Total £000

AssetsNon current

Marketable securities – – 3,342 3,342Charitable trust funds – – 2,277 2,277Total – – 5,619 5,619

CurrentMarketable securities – – 2,093 2,093Tradeandotherreceivables 4,057 – – 4,057Cashandcashequivalents 12,815 – – 12,815Total 16,872 – 2,093 18,965

LiabilitiesCurrent

Tradeandotherpayables – (4,932) – (4,932)Provisions – (349) – (349)Total – (5,281) – (5,281)

Non currentProvisions (439) (439)Total – (439) – (439)

Net financial assets/(liabilities) 16,872 (5,720) 7,712 18,864



15 FINANCIAL INSTRUMENTS continuedc Fair value hierarchy

Level1:Thefairvalueoffinancialinstrumentstradedinactivemarketsisbasedonthequotedbidpriceat thereportingdate.

Level2:Thefairvalueoffinancialinstrumentsnottradedinanactivemarketisdeterminedusingobservablemarket dataforallsignificantinputs.

Level3:Thefairvalueoffinancialinstrumentsnottradedinanactivemarketwhereatleastonesignificant inputcannotbedeterminedusingobservablemarketdata;thisincludesanyunlistedequitysecurities.

Availableforsalefinancialassetsarecarriedatfairvalue.Marketablesecuritiesandcharitabletrustsareclassifiedasalevel1fairvaluemeasurementfordisclosurepurposes,asthefairvalueisdeterminedbased onquotepricesinactivemarketsforidenticalassets.Thecarryingvalueofallotherassetsandliabilitiesapproximatesfairvalue.

d DerivativesCIMA took out foreign exchange contracts in 2016 to mitigate against potential losses on some grant expenditure to bepaidouttonon-UKofficesin2017;CIMAcontinuestoreviewcurrencyrequirementsandexchangeriskonanongoingbasis.

2016 £000

2015 £000

Valueofderivativesatdealrate (2,753) (4,463)Valueofderivativesatyearendspotrate 2,600 4,412Interest rate differential (3) 31Loss recognised in the consolidated statement of comprehensive income (156) (20)


16 RELATED PARTIESa ThegroupfinancialstatementsconsolidatetheaccountsofCIMA,itswhollyownedsubsidiaryundertakings,and

thecharitabletrustsandotherfundsunderthecontrolofCIMAlistedbelow.Thesefinancialstatementsexcludeallbalancesandtransactionsthatareeliminatedonconsolidation.CIMAmaintainsbranchofficesinIndiaandPakistan,andotherrepresentativeofficesinanumberofcountrieswhicharenotlistedbelowastheyarenotmaterialtothegroupfinancialstatements.

Name Countryofincorporation Principalactivity CIMAownershipThe Chartered Institute of Management Accountants

UK

CIMA Enterprises Limited UK Membershipofjointventure 100%Global Management Accountants inBusinessLimited

UK Membershipofjointventure 100%

The Chartered Institute of Management AccountantsBenevolentFund

UK Toprovideassistancetomembers and ex-members, and their families, in times ofhardship.

100%

TheAnthonyHowittLectureTrust UK Toadvanceeducationinaccountancyandrelatedsubjects.

100%

CIMA Australasia Limited Australia Membershipservices 100%Chartered Institute of Management AccountantsBangladeshbranch

Bangladesh Membershipservices 100%

CIMA China Co Limited China Membershipservices 100%The Chartered Institute of Management Accountants

Hong Kong Membershipservices 100%

Chartered Institute of Management AccountantsRepublicofIrelandDivision

Ireland Membershipservices 100%

CIMASEAsiaSdnBhd Malaysia Membershipservices 100%The Chartered Institute of Management Accountants

Dubai Membershipservices 100%

CIMA Singapore Pte Limited Singapore Membershipservices 100%The Chartered Institute of Management Accountants NPC

South Africa Membershipservices 100%

The Chartered Institute of Management Accountants Sri Lanka

Sri Lanka Membershipservices 100%

b Joint venturesAsperNote8,in2012CIMAformedajointventurewiththeAmericanInstituteofCertifiedPublicAccountants(AICPA),calledtheAssociationofInternationalCertifiedProfessionalAccountants.ThejointventurewasregisteredasaVereininSwitzerland,andisintheprocessofbeingwoundup.TherearefivemembersoftheVerein,threesubsidiariesoftheAICPA,andtwosubsidiariesofCIMA–CIMAEnterprisesLimitedandGlobalManagementAccountantsinBusinessLimited;throughthisownershipstructure,CIMAowns40%ofthejointventure.ThejointventureisgovernedbyaManagementBoard,comprisedoffourpersonsdesignatedbyCIMAandfourbytheAICPA.



16 RELATED PARTIES continuedc Dormant companies

CIMAholds100%ofthe100issued£1ordinarysharesofTheCorporateSocietyofFinancialManagementLimited,100%ofthetwoissued£1ordinarysharesofTheInstituteofCostandWorksAccountantsLimited,100%oftheoneissued£1ordinaryshareinCGMALimited,and100%ofthe100£1issuedordinaryshares ofGlobalProfessionalAccountantsinBusinessLimited,ProfessionalAccountantsinBusinessLimited,ManagementAccountantsinBusinessLimited,andCIMAChinaLimited.Allthesecompanieswere dormantintheperiodscoveredbythesefinancialstatements.

d General Charitable TrustTheGeneralCharitableTrust(GCT)isaregisteredcharity,andwasformedfortheadvancementofeducation inthesubjectsofaccounting,managementaccounting,electronicdataprocessing,costing,auditing,taxation,appliedeconomics,finance,andotherrelatedsubjectsofaneducationalnature.

DuringtheyearCIMAmadegiftaiddonationsof£100k(2015:£300k)totheGCT,andtheAmericanInstituteofCertifiedPublicAccountantsmadedonationsof£149k(2015:£126k).CIMAalsoprovidedsupportserviceswithanotionalvalueof£97k(2015:£98k).AttheendoftheyearthenetassetsoftheGCTwere£224k(2015:£150k),whichincluded£43k(2015:£10k)payabletoCIMA.

17 SUBSEQUENT EVENTSAsexplainedinNote8,in2016CIMAandAICPAmembersvotedtofurtherstrengthentherelationship.Tothisendtheexistingjointventureisintheprocessofbeingwoundup.Newentitieshavebeenincorporated,andthroughthisnewstructure,from1January2017,CIMAandtheAICPAhavealignedtheirstrategy,managementandoperations.

ThenewstructuretakestheformofanotforprofitUSbasedorganisation,namedtheAssociationofInternationalCertifiedProfessionalAccountants(the‘AssociationUS’),andaUKbasedsubsidiary–acompanylimitedbyguarantee–withthesamename(the‘AssociationUK’),togethertheAssociation.

From1January2017,CIMA(andtheAICPA)transferreditsemployeesandthemajorityofitsassetsandliabilities(butnottheCIMAPensionandAssuranceScheme)totheAssociation,toenableittomanageitsstatedobjectives.MemberandstudentsubscriptionincomewillcontinuetobepayabletoCIMA,andafterfulfillingobligationstothepensionscheme,willbepaidtotheAssociation.


MEETINGS ATTENDED BY MEMBERS OF CIMA’S COUNCIL AND EXECUTIVE COMMITTEE(January to December 2016)

NameElectoral

Constituency Council Executive NameElectoral

Constituency Council ExecutiveAgate M 11 6/6 Makepeace G # 3 0/1Ash P 11 6/6 4/4 Marshall S ## co 6/6BainbridgeSpringAP# 1 1/1 McCue S # 8 1/1 2/2BarnesD# 4 1/1 2/2 McGunnigle A 3 5/5BarrP+ 8 5/5 McMasters K nc co 6/6BeedhamR 6 6/6 4/4 MelanconB nc co 6/6BoffeyA 6 6/6 Miskin A p 6/6 6/6BraggK 3 5/6 MistryH+ 4 5/5Chan F + 16 5/5 Muchhala M 1 6/6Chan K K C # 15 1/1 NewburyK 6 6/6ClackworthyS 12 5/6 O’Connor T # 9 1/1Connaughton L + 9 4/5 Okanta-Ofori K ## 4 1/6DaviesN 2 6/6 OwenJ+ 1 5/5DavisonN 5 6/6 Panditharatne C 19 6/6 6/6Edirisinghe R + 14 3/5 Parker H 17 6/6EowKH# 16 1/1 ParsonsSB# 2 1/1EssayahK 12 5/5 RatnayakeA 18 6/6 6/6Fitzgerald L co 4/6 Richardson E M 2 6/6 4/4Goddard A + 15 5/5 Robertson I # co 1/1GrahamJ+ 6 4/5 Sharp R 11 6/6Hans A 1 6/6 Stahlin P nc co 5/6 6/6Harding A s 2/2 Stanford D dp 6/6 6/6Hurst S co 6/6 Stapleford S 3 6/6JacksonN co 5/6 5/6 SwientozielskyjSvp 6/6 6/6JessettN+ 4 4/5 Tarr D 10 6/6JohnsonD+ 2 5/5 TaylorA 7 6/6Kanaka M # 14 1/1 TaylorL 12 5/6 6/6Karkaria P co 5/6 TheagarajahR co 4/6KellyK nc co 4/6 TilleyCBs** 4/4LowneyM+ 3 5/5 WaymentS 11 1/6Luck K F # co 1/1 1/2 WestonJD 5 6/6Mack D co 5/6 WhiteheadH 5 6/6Madden M ipp co 6/6 6/6 ZhengJ co 6/6Macnab A 7 6/6

Keyp President * Non Council Memberdp DeputyPresident ** SteppeddownasChiefExecutive,CIMA31.07.16vp VicePresident *** Steppeddownasat31.01.17pp Past President + AppointmenteffectivefromAGM2016ipp Immediate Past President # LeftCouncilorExecutiveCommitteeatAGM2016co Co-opted ## LeftCouncilorExecutiveCommitteeDecember2016nc Non-CIMA Member S CIMA Staff Member

CIMA’s Council and Executive Committee members


CIMA ELECTORAL CONSTITUENCY1 CentralLondon&NorthThames2 SouthWestEngland&SouthWales3 EastMidlands&EastAnglia4 WestMidlands5 North East England6 NorthWestEngland&NorthWales7 Scotland8 Northern Ireland9 Republic of Ireland10 East,WestCentral&SouthernAfrica11 Central Southern England12 South East England14 South Asia15 North Asia16 South East Asia17 Europe,NorthAfrica&MiddleEast18 The Americas19 Australasia

HONORARY OFFICERSPresident AndrewMiskinDeputyPresident DavidStanfordVicePresident SteveSwientozielskyjImmediate Past President MyriamMadden

CIMA’S GOVERNANCE COMMITTEESExecutive Committee Appointments Committee Audit and Risk Process CommitteeChairman AndrewMiskin p Chairman MyriamMadden ipp Chairman Gordon Grant* pp

DavidStanford dp Keith Luck* pp ViceChairman George Glass* ppSteveSwientozielskyj vp AndrewMiskinp JasonBoxer*

MyriamMadden ipp DavidStanford dp Ian Kleinman*Paul Ash SteveSwientozielskyj vp Kris McMasters nc

BobBeedham Mike Agate SimonBittlestone*AmalRatnayake DaveMack Richard Sharp

Elaine Richardson HillaryParkerLouiseTaylorNickJackson

Chandana PanditharatnePaul Stahlin

AndrewHarding*Secretary Gail Stirling s Secretary BaljeetBasra s Secretary BaljeetBasra s

CIMA’s Council and Executive Committee members continued


CIMA’S POLICY COMMITTEESGlobal Markets Committee Technical Committee Professional Standards CommitteeChairman AmalRatnayake Chairman LouiseTaylor Chairman BobBeedhamViceChairman Debbie Tarr ViceChairman HowardWhitehead ViceChairman KarenNewbury

KasiaCiezkowska* CharlesBatchelor* AnnaCorry*NicDavison AnthonyBoateng* NigelDavies

Chandrin Fernando* Stuart Chaplin* Peter Fullam*AtanasJelev* Louise Connaughton NigelIyer*

NickJessett Alasdair Macnab DavidJohnsonPhillie Karkaria Sheena Mathers* MichaelLowney

AlistairTaylor JeremyOsborn* DuncanSwift*RajendraTheagarajah StuartWayment

MahesWickramasinghe*Mirella Zhang*

Secretary JohnWindle s Secretary Dr Noel Tagoe s Secretary Gail Stirling s

Lifelong Learning Committee Members’ Services CommitteeChairman Paul Ash Chairman Elaine Richardson ViceChairman

Professor Lin Fitzgerald

ViceChairman Sue Stapleford

PatrickBarr Olorunnisola Abiodun*JimCallander* TonyBoffey

Francis Chan AmarjeetHansStephanieClackworthy Melanie Kanaka*

RaviEdirisinghe AndrewMcGunnigleJohnGraham Yasmin Mohd Ramzi*

TrevorHassall* Mustafa MuchhalaNiallHennessy* JohnWeston

VictorOlowe* JohnZhengTimStewart*

Secretary Dr Noel Tagoe s Secretary FionaHarvey s

SENIOR LEADERSHIP TEAM

ChiefExecutive AndrewHarding sManaging Director – Europe, Africa and Asia Irene Teng sChiefFinancialOfficer JohnWindle sExecutiveDirector–Education Dr Noel Tagoe sExecutiveDirector–MarketingandSales FionaHarvey sExecutiveDirector–Governanceand Professional Standards Gail Stirling sExecutiveDirector–ExternalAffairs TonyManwaring s***


OTHER COMMITTEES, BOARDS AND TRUSTSBenevolent Fund Committee General Charitable Trust Anthony Howitt Lecture TrustChairman JohnWeston Chairman GlynnLowth* pp Chairman AndrewMiskin pViceChairman Paul Ash ViceChairman Rod Hill* pp DavidStanford dp

DerekBarnes* BobBeedham SteveSwientozielskyjvpFrankGuilfoyle* IvanCourt* MyriamMadden ipp

Sue Hoof* FrancescaWindsor*DaveMack

AndrewOxley*RobertIWilson(Bob)*

Secretary Caroline Aldred s Secretary Robert Spencer s Secretary JohnWindle s

CIMA Enterprises Ltd (CEL)Global Management Accountants in Business Ltd

Association of International Certified Professional Accountants

Director and ChiefExecutive AndrewHarding s Director AndrewHarding s Chairman MyriamMaddenippDirector CIMA(CorporateBody) Director CIMA(CorporateBody) DeputyChair KennethKelly

MarkLewis*BarryMelanconKris McMasters

AndrewMiskin p CompanySecretary BaljeetBasra s

CompanySecretary BaljeetBasra s

INDEPENDENTLY APPOINTED CONDUCT COMMITTEESInvestigation Committee Disciplinary Committee Appeal CommitteeChairman ColetteNeville nc Chairman SarahBaalham nc Chairman JulesGriffiths ncViceChairman GrahamHumby nc ViceChairman CarolynTetlow nc ViceChairman Peter Cadman nc

Morounke Akingbola* BrynAnstice nc Malcolm Cornberg*JohnAnderson nc JosephCampbell* JonathanPage nc

KeithBrims* Paul Carcone* DanielFarrow*PaulBrittain* Susan Gallone* Karen Rea nc

VictoriaIsaac nc HuwJones*ChrisMatthews-Maxwell nc JamesKellock nc

Diana Reid nc Paul Pharaoh ncDavidRobbins* MichaelReddy nc

HywelTudor* SandraRyder*HelenRilley nc

Stephen Thacker ncIanWatts*

CIMA’s Council and Executive Committee members continued


Board or committee CIMA representativeCCAB Ireland (CCABI) Chairman Sean Shine*Deputy Chairman Sharon McCue*MiP Chair Tony Manning*Head Roger Acton*

International Federation of Accountants (IFAC)Council Andrew Miskin pBoard Observer Keith Luck*

Myriam Madden ippProfessional Accountants in Business Committee Chairman Charles Tilley**Professional Accountants in Business Committee Member Stuart Chaplin*International Ethics Standards Board for Accountants (IESBA) Claire Ighodaro*Small and Medium Practices Committee

Berend Van Aswegen*

Professional Accountancy Body Development Committee Devika Mohotti*

Board or committee CIMA representativeAmerican Institute of Certified Public Accountants (AICPA) Myriam Madden ipp

Accountancy EuropeGeneral Assembly Andrew Miskin p

Andrew Harding sAccounting Working Party Charles Batchelor*Company Law and Corporate Governance Working Party David Hackett sCorporate Reporting Policy Group Nick Topazio s

Council of the Association of Accounting Technicians (AAT)3rd out of 3 years (1st term) Linda Kumbemba*2nd out of 3 years (1st term) Kevin Bragg3rd out of 3 years (3rd term) Reg Wood*

OTHER SENIOR APPOINTMENTS HELD BY CIMA MEMBERS/REPRESENTATIVES

FRC Reporting Lab Steering Group Member Charles Tilley**FRC Culture Steering Group Member Charles Tilley**PwC Building Trust Awards Judging Panel Chairman Charles Tilley**International Integrated Reporting Council Member Charles Tilley**Prince of Wales Accounting for Sustainability Advisory Council Member Charles Tilley**HM Treasury Joint VAT Consultative Committee Nic Davison

University CourtsUniversity of Bath Elaine RichardsonUniversity of Lancaster Richard Kenworthy*Loughborough University Glynn Lowth* ppUniversity of Surrey Mike AgateUniversity of Stirling Conference Jim Callander*University of Cardiff Nigel DaviesCity University, London Gulzari Babber* pp

CIMA REPRESENTATIVES ON EXTERNAL BOARDS AND COMMITTEES

CIMA regional offices:

Africa4th floor, 54 Melrose Boulevard Melrose Arch Melrose North Johannesburg, South Africa T: +27 (0)11 788 8723 [email protected]

Middle East, South Asia and North Africa356 Elvitigala Mawatha Colombo 5 Sri Lanka T: +94 (0)11 250 3880 [email protected]

South East Asia and AustralasiaLevel 1, Lot 1.05 KPMG Tower, 8 First Avenue, Bandar Utama, 47800 Petaling Jaya, Selangor Darul Ehsan, Malaysia T: +60 (0) 3 77 230 230/232 [email protected]

EuropeThe Helicon One South Place London EC2M 2RB United Kingdom T: +44 (0)20 8849 2251 [email protected]

North Asia1508A, 15th floor, AZIA Center 1233 Lujiazui Ring Road Pudong Shanghai, 200120 China T: +86 (0)21 6160 1558 [email protected]

CIMA also has offices in the following locations:Australia, Bangladesh, Botswana, China, Ghana, Hong Kong SAR, India, Ireland, Malaysia, Nigeria, Pakistan, Poland, Russia, Singapore, South Africa, Sri Lanka, UAE, UK, Zambia and Zimbabwe.

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Documents

Financial statements For the year ended 31 December 2016 ... · increased by £7.4m, as a result of the discount rate assumption decreasing from 3.75% in 2015 to 2.65% on 31 December