Institute news

China's 2019 CGMA awards and CFO Forum

At the combined 2019 CGMA Annual Awards and CFO Forum held in Shanghai in early December, delegates heard the Association of International Certified Professional Accountants' Andrew Harding, FCMA, CGMA, chief executive—Management Accounting, speak on the Future of Finance, trust, and innovation in management accounting.

The Association signed a memorandum of cooperation with China International Talent Exchange Foundation, a Chinese government body that promotes training and professional qualification certification.

Delegates also heard speeches looking at the macroeconomic outlook for China in 2020 and on "Integrated Thinking and Global Perspective of CFOs".

Other speakers included Shirley Liu, FCMA, CGMA, vice-president and CFO of Coca-Cola Greater China and Korea and the chair of the Association's North Asia regional advisory panel; and the CFO of Jaguar Land Rover China, Arthur Yu, FCMA, CGMA.

The CGMA awards recognised companies including China Pacific Property Insurance Company, State Grid Shandong Electric Power Company, Beijing Automotive Group Co. Ltd, Fosun International Limited, Ping An Asset Management Co. Ltd, and Wanda Hotel Management (Shanghai) Co. Ltd.

Ruijuan Mo, the CFO of Qingdao Haier Biomedical Co. Ltd, won the award for The Most Valued CFO of the Year 2019.

Individuals recognised in the CGMA Finance Leader of the Year 2019 category were:

• Gang Liu, FCMA, CGMA, vice-president, CFO, Haier Financial Holdings.
• Jianbin Wu, executive vice-president, Yango Group Co. Ltd.
• Christina Zeng FCMA, CGMA, CFO, China Services, Lenovo Group.
• Ben Sun, deputy general manager, China West Airport Group Co. Ltd.
• Tong Zhang, co-president, Bulls Capital Co. Ltd.

Institute wins award for member reskilling campaign

CIMA has won a member services award in the 2019 Accountancy Europe Digitalisation Awards for its Future of Finance campaign to reskill the profession and deliver sustainable careers. Accountancy Europe is the Brussels-based organisation representing 1 million qualified accountants through 51 professional bodies from 36 countries. CIMA members can learn about the technologies disrupting the profession in the "A to E" of finance at cimaglobal.com and use the code MINDSET20 to obtain their free Digital Mindset Pack.

Important changes to regulations governing CPD monitoring

All members are required to undertake CPD, which is an important part of the guarantee of professionalism that is imparted by CIMA membership. To ensure that our CPD monitoring remains robust, fair, and targeted, Regulations Part 1 13—18 (which govern CIMA's CPD monitoring requirements) have been updated.

The updated Regulations will come into effect on 1 March 2020. So that you are aware of the changes and how they impact you, please see the updated Regulations and further guidance at cimaglobal.com.

What are the changes?

The essential requirements for members — to undertake CPD, retain a record of it, and submit that record for review if required — remain the same. The main changes are contained within Regulation 18, which sets out the consequences of noncompliance. Regulation 18 emphasises that by renewing their membership, members are declaring that they have undertaken CPD in accordance with CIMA's requirements. Any member who is found to have made a false declaration in any application for renewal may be subject to a penalty or disciplinary action.

A new Regulation 18A introduces financial penalties for noncompliance. Any member who fails to provide adequate records of CPD undertaken in accordance with the Institute's requirements by the specified date will be subject to a system of financial sanctions (the Fixed Penalty Scheme). A first breach of the CPD requirements will incur a fixed penalty of £100 or local currency equivalent. Any second breach will incur a fixed penalty of £250 or local equivalent. A third CPD breach will result in referral to the Institute's Disciplinary Committee for consideration of further disciplinary action. Failure to pay any fixed penalty under the Fixed Penalty Scheme within 56 days of the date of sending the demand will also result in referral to CIMA's Disciplinary Committee.

Why the changes?

Undertaking CPD and being monitored for compliance is what sets professional accountants apart from the unqualified or unregulated. In an increasingly complex business landscape, a robust CPD monitoring programme ensures CIMA members are seen as professional, relevant, and properly equipped for the demands of business now and in the future.

If you are selected for monitoring, CIMA has a dedicated team of staff who can help you through the CPD monitoring process.

What can I do now?

Keep learning and use the Competency and Learning website to record your development activity.

It is also important that you ensure all the contact details that CIMA holds for you are up to date, so that we can contact you should you be selected for CPD monitoring. If you are selected, you must submit your record to CIMA using the Competency and Learning website (competency.aicpa.org/users/login) or confirm you work for an accredited employer (see the list of accredited employers at cimaglobal.com.

Resources to support new Code of Ethics

Alongside its updated Code of Ethics (cimaglobal.com/codeofethics), CIMA has completely refreshed its ethics resources. Students and members may face a range of ethical dilemmas during their career, and CIMA is here to support them in dealing with these effectively. Visit cimaglobal.com/ethics to find a range of new materials including videos, articles, and quizzes to test your knowledge. They are designed to help you understand and apply the CIMA Code of Ethics, as well as deal with new and emerging ethical challenges such as those posed by new technologies.

CIMA president joins centenary celebrations in Australasia

The Institute's president, Amal Ratnayake, FCMA, CGMA, was in Melbourne and Sydney in Australia, and Auckland in New Zealand for a series of centenary celebrations in November 2019. Australasia is globally the third-largest CIMA member region.

At member events, as well as marking CIMA's 100 years, Ratnayake acknowledged current long-standing members. Sydney's event, with the highest number of attendees on record, was held for the first time at the city's Luna Park, a 1930s harbourside amusement park.

The Auckland Business Breakfast event for members was held at the Royal New Zealand Yacht Squadron with New Zealand's finance minister, the Hon. Grant Robertson, as guest speaker. He shared insights on the future business outlook for New Zealand, the transition to a digital economy, and how the country can be a breeding ground for innovators and startups.

Earlier, in October, Ratnayake was at events in Toronto, London, and Bristol. In September, he introduced the Institute's Anthony Howitt Lecture, which was held in Edinburgh, Scotland.

Charity Commission: Concern around external scrutiny of charity accounts

The UK charity regulator, the Charity Commission, is working with the accountancy sector to drive up standards. A recent study of 296 charities (available at gov.uk) by the commission highlighted that only around half of the reviewed accounts of medium-sized charities (with an income of £250,000—£1 million) met the regulator's external scrutiny benchmark (see the policy paper available at gov.uk). Of smaller charities with an income of £25,000—£250,000, only 37% met the scrutiny benchmark.

Members should also refer to the commission's guidance on the independent examiner's responsibilities in relation to the scrutiny, preparation, and filing of accounts (see the guidance available at gov.uk).

Members who provide external scrutiny of charity accounts must ensure they work within the required standards.