HONG KONG aNNual review 2010 locations docs/Hong Kong...CIMA Hong Kong Annual Review 2010 2010 2009 2008 Member population 83,487 79,757 76,363 2010 2009 2008 Student population 99,264

CIMA Hong Kong Annual Review 2010

HONG KONGaNNualreview2010Creating sustainable business growth


2010

2009

2008

Member population

83,487

79,757

76,363

2010

2009

2008

Student population

99,264

92,909

91,512

01 Welcome to CIMA02 Divisional president’s message03 Divisional director’s statement04 an overview15 Summary accounts29 Contact details

2010 at a glance:

107,613Exam papers taken

252Exam centres used

£43.4mIncome

83,487Members

99,264Students

208Countries


01 Co

ntents

CIMA is where business and finance meet.Chartered Management Accountants arestrategic leaders and business partners whoenable organisations to make business-criticaldecisions. Organisations in the private, publicand not-for-profit sectors turn to our membersto build effectiveness; they cover broad issuessuch as enterprise performance, operationsmanagement and financial managementand stewardship.

Our purposeThe ever greater employability of CharteredManagement Accountants.

Our visionChartered Management Accountants drivingthe world’s successful organisations.

Our missionTo be the first choice for employers inthe qualification and development ofmanagement accountants.


02Divisio

nal president's message A message from

your president

Following on from the Hong Kong market

review carried out in 2009, additional

resources have been provided to promote

the science of management accounting in

Hong Kong. The promotion has resulted in

strong growth for CIMA in Hong Kong on

all fronts; seeing positive increase in our

new student recruitment as well as overall

growth in our student and membership

population. The strategies set in 2009 are

achieving encouraging results and we will

continue to put further efforts in rolling

them out in the forthcoming year to ride

on their success.

In the past, management accountancy

was seen more as a male-orientated

profession, perhaps ensuing from our

historical costing and manufacturing

origin. This perhaps, to a certain extent,

was reflected in our membership structure

with approximately 40% of our members

being female and a relatively lesser

representation of women than men

occupying senior business positions. This

issue was highlighted in one of CIMA

thought leadership pieces 'Breaking glass

- Strategies for tomorrow's leaders' during

the year. From Hong Kong, I would like to

take this opportunity to particularly thank

four of our members who took part in this

report; they are Theresa Chan (Corporate

Finance Director of Warner Bros), Amy

Lam (Group Finance Director of Jardine

Shipping Services), Irelan Tam (Regional

Finance Director of Johnson & Johnson

Hong Kong) and Jenny To (Managing

Director of Pernod Ricard). They are

amongst some of our many eminent

female CIMA business leaders who have

successfully overcome ongoing barriers in

their career development and reached the

top in Asia at the end. In the coming years,

I have no doubt there will be many more

successful stories of our lady members

that we can share with you.

As the Hong Kong economy becomes

more interlinked with the mainland,

we see more and more members and

students working and travelling between

the two places. This provides many

challenges as well as opportunities to us.

To prepare ourselves to cope with those

demands, CIMA is transforming into a

more regional organisation to take on

those challenges and opportunities. With

the directive from the CIMA Council, the

global governance structure will move

towards the formation of regional boards

to provide the necessary speed, autonomy

and empowerment essential for meeting

the council's objectives. Closer to us, we

will see the formation of three boards

namely the Australasia Regional Board, the

South East Asia Regional Board and the

North Asia Regional Board later this year.

The final details have yet to be confirmed

and all our members will be kept informed

of the latest development over time.

It has been my honour to be the

divisional president of the CIMA Hong

Kong division this year. I would like to

take this opportunity to thank all my

divisional council members and the

various committees for voluntarily and

whole-heartedly helping to promote

and grow the division together. Not only

have they devoted their valuable time to

CIMA, everyone has also given more than

their best efforts in being the honourable

ambassadors in this region to promote

management accountancy and financial

management for the institute. Last but not

least, I would like to express my deepest

gratitude to Leo Cheung, our immediate

past divisional president, for his valuable

service to the division as he will be retiring

from the divisional council after the AGM

in 2011. Thank you all.

Paul Chan FCMA

Divisional President, Hong Kong


03 Divisio

nal director’s statem

entFrom the divisional director

In the past two years we have

be concentrating our efforts on

communicating the CIMA differentiation,

to enable the public, employers, tertiary

students and potential students

to understand what management

accountancy is and how our members

differ from other accountants. This

message has received good feedback

especially from two groups; financial

accountants wanting to expand their

career horizons into other roles, and

aspiring senior managers who would like

to be more financially literate in-order to

excel their career.

To facilitate these groups of prospective

students, in 2010 we introduce a special

gateway assessment designed to assess

MBA graduates and members of other

accounting bodies for direct entrance into

the strategic level papers. The assessment

looks at different areas taken from the

operational and managerial level and

serves as a safeguard to ensure that the

students will be able to pass the final

papers. We are grateful to Hong Kong

University SPACE, our partners who

have designed a preparatory course for

these students to aid their studies. In the

coming years we will expect to see more

students joining CIMA via these routes.

On a personal front this year been a

very rewarding experience. I have been

able to see how CIMA is able to help

people’s careers not only upwards but

also sideways. Members and students are

moving into roles where the skill set learnt

in the CIMA training equips them with the

knowledge they need. CIMA is regarded

as one of the most relevant to business

qualifications as we update the syllabus

every four years with feedback from over

2,000 employers. This reflects how our

qualification trains people to go beyond

accountancy and we now truly occupy the

space where business and finance meet.

Hong Kong has continued to shine within

CIMA. Our student Amit Chhabra from

Johnson Electric scored the highest mark

globally in the gateway assessment. Alan

Wong from Jardine Matheson came third

globally in the performance strategy

paper and Richard Bellingham came

sixth globally in the financial operations

paper. In general the passing marks for

the operational and managerial papers

in Hong Kong have been higher than

the global average for the second year

running. This has been achieved by not

only attracting students that are capable

but also the additional student support

resources that have been invested in

the past few years. In the CIMA Global

Business Challenge where over 2,000

groups of international university students

compete in a business case study, the

Hong Kong team won the accolade for the

second year running, demonstrating again

that the territory is producing some of the

finest financial leaders in the world.

Lastly, I would also like to thank the

divisional council for their direction and

my devoted team in Hong Kong for

all their enthusiasm and hard work in

delivering the excellent services to all our

stakeholders.

Damian Yip

Divisional Director, Hong Kong


04

20 March 2010

Joint networking trip with CMA Canada

A leisure hiking to High Island Geo Trail

was jointly organised with CMA Canada.

8 April 2010

CIMA annual dinner

To mark this special occasion the CIMA

president, Mr Aubrey Joachim was able

to fly in from Australia to be with us. Mr

Frankie Lam ACMA, Acting Deputy Director

of Accounting Services, The Treasury of

HKSAR was our honourable guest for

the night. Other guest included Mr Chai,

Division Chief of the Central Government

Liaison Office, and other representatives

from the educational institutions and

professional bodies, all of which added

more colours to the event.

Activities8 - 10 January 2010

Pearl River Delta trip

CIMA together with other accounting

bodies joined a study trip to PRD organised

by the Accounting Resources Centre. A

group of 41 participants visited government

and CICPA to network, build contact points

and exchange views on the region.

12 January 2010

Fellow application workshop

A fellowship application workshop was

conducted by Mr Richard Kenworthy FCMA,

Divisional Vice President. ACMAs who were

interested to become fellow members of

the institute where able to hear directly

from the ex-assessor on the requirements

and benefits of becoming a fellow.

23 February 2010

CIMA Hong Kong spring cocktail

A spring cocktail reception was organised

at the British Consulate to celebrate the

year of Tiger.

25 June 2010

CIMA Hong Kong 26th Annual General

Meeting

At the CIMA 26th Annual General Meeting

Mr Paul Chan, Mr Richard Kenworthy

and Dr Li Wing Sun were elected as the

Divisional President, Divisional Deputy

President and Divisional Vice President of

CIMA Hong Kong for the term 2010-2011

respectively. Ms Rachel Cheung, Mr Francis

Chiu, Ms Jackie Ko and Ms Amy Lam were

elected to the divisional council serving a

three year term.

9 July 2010

CIMA-Polytechnic University of Hong

Kong reunion

The night bought together many members

who had studied at the Polytechnic

University of Hong Kong. Members were

able to meet up with many ‘old’ friends

and also meet some newer ones.

11 July 2010

Joint networking trip with CGA

A leisure boat trip to Sai Kung was jointly

organised with CGA.

Member services


4 September 2010

Joint networking trip with CGA

A leisure Firefly night was jointly organised

with CGA.

7 December 2010

CIMA Hong Kong Christmas party

The party was held at the Rosedale Hotel

in Causeway Bay, selected members were

invited to join the party as a token of

appreciation for their contribution to the

division in 2010.

12 December 2010

Leisure trip for CIMA students and

members

A leisure trip and BBQ lunch was organised

for CIMA members, students and their

relatives and friends in Tai Po and Fanling area.

CPD events4 March 2010

Joint CPD seminar with StepStone on ‘How

to recruit a right candidate in the selection

process’ by Dr Aidan Goddard, divisional

council member and Dr Erik Schmit,

Managing Director of StepStone China.

05

11 March 2010

Supported by CIMA the ‘International tax

planning solutions’ forum was organised

by the China Economic Review.

26 March 2010

Joint seminar with IBM on ‘A scorecard

management approach in manufacturing’

by Dr WS Li, divisional council member.

26 March 2010

Joint CPD seminar with HKICPA on ‘Key

processes of a company listing and the

role of the Non-Executive Director’ by

Mr. Harby Janagol FCMA, Mr. Derek Roth-

Biester and Mr. Dennis Ow.

29 March 2010

Supported by CIMA PolyU SPEED

organised a seminar on ‘Hong Kong as a

risk management system for sustainability:

a symposium’.

9 April 2010

Joint CPD seminar with HKICPA on ‘The

future of governance in Asia’ by Mr Aubrey

Joachim, CIMA President.

10 April 2010

Joint seminar with CUHK SCS on ‘Global

perspective on governance: lessons from

east to west’ by Mr Aubrey Joachim, CIMA

President.

17 April 2010

Joint seminar with AIA, CGA, CMA

Canada, BDO and Hong Kong Polytechnic

University on ‘New Hong Kong financial

reporting standard (HKFRS) for private

entities – are you prepared for this new

financial reporting option?’ by Mr Stephen

Chan, Partner and Head of Technical and

Training, BDO Limited CPA.

An overviewMember services

continued


18 October 2010Joint CPD seminar with HKICPA on 'The emerging strategic role of the management accountant' by Mr Aubrey Joachim, Immediate Past President of CIMA.

19 October 2010Joint CPD seminar with HKICPA on 'The finance professionals role in risk management' by Mr Aubrey Joachim, Immediate Past President of CIMA.

19 October 2010Joint seminar with CPA Australia and HKU SPACE on 'The role of finance in business strategy' (Professional Seminar Series) by Mr Aubrey Joachim, Immediate Past President of CIMA.

06

9 September 2010Joint seminar with ICAC on ‘From corruption prevention to ethics management’.

13 September 2010CPD networking event on ‘Private and commercial uses of private trust’.

17 September 2010Supported by CIMA the ‘Practitioner Forum - Islamic Finance & Dubai Debt Issues’ organised by CUHK SCS.

29 September 2010Joint seminar with IBM on 'Optimising Finance - driven Performance Management by Consolidation - Reporting and Analytics'.

28 June 2010Joint CIMA-Bradford University networking seminar on ‘Economics in business: how understanding modern micro-economics can help managers’ by Mr Simon Delay organised with RDI.

28 July 2010Supported by CIMA the ‘Post-expo economy’ organised by the China Economic Review.

31 July 2010Joint seminar with AIA, CGA on ‘Resolving shareholder disputes - negotiation mediation litigation’.

NewsletterSeven issues of the CIMA Hong

Kong Division e-newsletter were

sent to all CIMA members and

students to keep them posted

on local news and events.

Member services continued


07 An overview

Student support

Induction seminarsTo facilitate better understanding of CIMA

among all news students, four induction

seminars were conducted in February and

August. The sessions provided information

on CIMA, the study aids available and

the administrative procedures for

examinations.

Courses CIMA revision courses for CIMA Paper P3

and T4 were jointly organised by CIMA and

HKICPA in April and October. Preparatory

courses on papers E1, E2, E3, F1, F2,

F3 were held at CIMA office in March,

September. In addition to these courses

organised by CIMA, students also enrolled

on the joint courses offered by The CUHK

SCS and CIMA.

Overview sessionCIMA organised free overview sessions

on Paper E2, E3 and F3 for all students in

which, the lecturers gave an overview of all

the topics for each paper and brief them

on how topics are inter-related. These

sessions are intended to help student make

a study plan at least three months before

the examinations.

T4 case study sessionA T4 case study session for students to

better prepare for the examination was

conducted by Ms Cindy Yeung, Manager,

Finance Department of Cable TV and

Mr Jasper Chung ACMA, management

accountant, Richemont Asia Pacific.

Study materialsThe division continues to offer book-

purchasing service on the official learning

materials which include the CIMA learning

system, exam practice kit and revision card

published by CIMA Publishing with Elsevier.

Students were also encouraged to us the

online study modules cimastudy.com

Practical experience requirement workshop A practical experience requirement

workshop was organised on 18 May and

26 August. The workshop helped students

to understand the requirements of work

experience required for membership and

the procedure needed when applying

for membership. Mr Richard Kenworthy,

Divisional Vice President and Mr Henry

Lau, ACMA were invited to share their

experience with all CIMA strategic level

students.


08

Activities19 January 2010

Information session on the ‘Professional

programmes in management accounting’

jointly offered by CIMA and CUHK SCS.

25 January 2010

Career talk for the University of Hong

Kong students.

26 January 2010

CIMA roundtable discussion for Human

Resources professionals on ‘Recruiting

finance and accounting talent’.

27 January 2010

Career talk for Lingnan University students.

27 January 2010




29 January 2010

Career talk at Caritas in Tsuen Wan and

Fanling.

Scholarship awardsCIMA scholarships have been awarded

to the City University of Hong Kong,

Hong Kong Baptist University, Hong Kong

Community College, Hong Kong Institute

of Vocational Education, Lingnan University,

The Hong Kong Polytechnic University and

The University of Hong Kong for students

achieved the highest scores in ‘Cost

Accounting’ or ‘Management Accounting’

subjects in their courses. Representatives

from CIMA were invited to join the

following prize presentation ceremony.

19 March 2010

Staff attended the City University of Hong

Kong scholarship and prize presentation

ceremony.

25 March 2010

Staff attended the scholarship presentation

of Hong Kong Polytechnic University.

12 April 2010

The Lingnan University scholarship

presentation ceremony by Mr Richard

Kenworthy, Divisional Vice President.

24 April 2010

Mr Leo Cheung, Divisional President,

CIMA Hong Kong attended the

innovative entrepreneur of the year 2010

opening ceremony 2010

organised by the City Junior Chamber

.

19 June 2010

The IVE - accounting software applications

competition for secondary school students

prize presentation ceremony by Ms Irene

Cheng, divisional council member.

12 July 2010

Staff attended the City University of Hong

Kong’s prize presentation ceremony.

17 July 2010

The MEP final presentation day by Ms Amy

Lam, divisional council member.

29 November 2010

Staff attended the 2010 Prize Presentation

Ceremony of the Faculty of Business and

Economics, the University of Hong Kong.

Promoting and developing the science of management accounting


26 May 2010

CIMA-CUHK SCS information session on

management accounting programmes.

12 June 2010

CIMA booth at HKUSPACE open day.

18 June 2010

CIMA booth and seminar at the HKTDC

entrepreneur day at the Hong Kong

Convention and Exhibition Centre.

19 June 2010

Global Business Challenge (GBC) Hong

Kong regional final.

The Global Business Challenge (GBC) is a

competition for all full time undergraduates

of Hong Kong university degree programs.

It is designed to provide an opportunity for

students to analyse and evaluate a special

business situation and apply management

accounting concepts. It also helps CIMA

in promoting the science of management

accounting to next generation of business

leaders. In Hong Kong the competition

started in February 2010, it attracted more

than 140 teams from all universities.

17 March 2010




18 March 2010

Staff participated in the ‘networking day

with the business professionals’ at Lingnan

University.

25 March 2010

Staff attended the ‘Perfect match-

graduate recruitment and employer

branding’ at the City University of Hong

Kong.

1 April 2010

Career seminar for HKU SPACE Community

College students.

15 April 2010

Career talk for Hong Kong College of

Technology students.

22 April 2010

CIMA – CUHK SCS information session on

management accounting programmes.

6 May 2010

Career seminar for CUHK SCS students.

7 – 10 May 2010

Global Business Challenge press conference

at The Chinese University of Hong Kong.

12 May 2010

Career talk for Caritas students.

1 February 2010

Career talk for the Hong Kong Polytechnic

University students.

2 February 2010

Career talk for the Open University of

Hong Kong students.

3 February 2010

Information session on the Certificate in

Islamic Finance programme jointly offered

by CIMA and HKU SPACE.

6 February 2010

Seminar on ‘Career beyond accounting’ at

the Hong Kong Convention and Exhibition

Centre.

8 February 2010

Career talk for the Hong Kong University

of Science and Technology students.

9 February 2010

Career talk for the City University of Hong

Kong students.

24 February 2010

Information session on the Certificate in

Islamic Finance programme jointly offered

by CIMA and HKU SPACE.

2 March 2010

Career talk for the Hong Kong Polytechnic

University students.

11 March 2010

CIMA participated career talk and

exhibition at the University of Hong Kong.

09 An overview

Promoting and developing the science of management accounting continued


28 September 2010

CIMA booth at A-Performers MBA and

Postgraduate Fair at the Worldwide

Executive Centre.

5 October 2010

Information seminar on professional

programmes in management accounting

jointly organised by CIMA-CUHK SCS.

26 October 2010

Information session at City University of

Hong Kong conducted by Mr Kingston Ho,

Divisional Council member.

3 November 2010

CMGA information seminar at HKU SPACE.

27 November 2010


16 December 2010


5 August 2010

CIMA Global Business Challenge Global

Final.

The Hong Kong winning team Starlight

from the University of Hong Kong entered

the Global Final at the Taylor’s University

in Kuala Lumpur, Malaysia and competed

with 13 other country finalists from UK,

Ireland, Sri Lanka, India, mainland China,

Malaysia, Pakistan, Singapore, South

Africa,UAE, Philippines, Bangladesh and

Australia. Starlight eventually won the

global final and became world champion

for the competition, it was also the second

time Hong Kong representatives seized the

grand trophy.

28 August 2010

Information seminar on professional

programmes in management accounting

jointly organised by CIMA-CUHK SCS.

6 September 2010

CIMA booth at Hong Kong Careers Fair of

Oxford, Cambridge, LSE, Imperial College

at British Council.

10

Promoting and developing the science of management accounting continued

6 July 2010

Career talk for Manchester Business School

students.

6 July 2010

CIMA participated in the A-performers

Greater China talent management summit

2010.

7 July 2010


17 July 2010

Career talk for City University of Hong

Kong students.

29 July 2010

Career seminar for Bradford University

students.

30 July 2010

CIMA-HKU SPACE information seminar

on Certificate of Islamic Finance joint

programmes.


An overview

11

21 January 2010

Dr Aidan Goddard, divisional council

member, CIMA Hong Kong attended

the budget consultation group meeting

organised by the Financial Services and

the Treasury Bureau.

21 January 2010

Mr Kenneth Chan, CIMA council member

attended the HKICS annual dinner.

21 January 2010

Staff attended the thematic workshops in

Asian financial forum 2010 at the Hong

Kong Convention and Exhibition Centre.

26 January 2010


Mr Richard Kenworthy, Divisional Vice

President, and Mr Kenneth Chan, CIMA

council member and staff attended the

Anthony Chan Co. annual dinner.

28 January 2010

Dr Aidan Goddard FCMA, Mr Steve Au

Yeung FCMA, Ms Irene Cheng ACMA, Dr

Artie Ng FCMA and Mr KY Wong FCMA

participated in the budget consultation

group meeting.

1 February 2010

Mr Paul Chan, Divisional Deputy President

attended the conference on 'Best practices

in internal audit' organised by Pacific

Conference and supported by CIMA.

1 February 2010

Staff attended HKIHRM/SCMP People

Management Awards 2009 Presentation

Ceremony luncheon.

4 March 2010

Mr Leo Cheung, Divisional President

attended the ACCA Hong Kong Spring

Dinner.

5 March 2010

Staff attended the HKU SPACE Community

College 10th anniversary dinner.

11 March 2010


attended the HKICPA spring dinner.

16 March 2010

Staff attended the annual symposium

on risk management organised by

Kornerstone.

18 March 2010


and Mr Kenneth Chan, CIMA Council

member attended the Society of Chinese

Accountants & Auditors Spring Dinner

2010.

24 March 2010


President, attended the scholarship

presentation ceremony and donors’ tea

reception of the Hong Kong Baptist

University.

26 March 2010


attended the AIA annual dinner.

26 March 2010

Dr WS Li, Divisional Council Member,

presented at the CIMA - IBM joint sharing

session on ‘A scorecard management

approach in manufacturing’.

30 March 2010

Dr Aidan Goddard, divisional council

member, attended the briefing on the

white book of Guangzhou international

business development 2010.

15 April 2010

Staff attended the official launch of

HKIHRM HR professional standards gala

dinner.

22 April 2010


President, attended the Hong Kong

Polytechnic University's donors' reception.

26 April 2010


attended the ACCA 60th anniversary

cocktail reception.

30 April 2010

Dr Artie Ng, divisional council member,

attended the seminar on 'Innovation and

technology policy for Hong Kong’ organised

by the Economic Analysis Division,

Economic Analysis and Business Facilitation

Unit, Financial Secretary’s Office, HKSAR.

Other divisional engagements


Other divisional engagements continued

12

1 May 2010

Staff attended the 45th anniversary

celebration opening ceremony of the

School of Continuing and Professional

Studies, Chinese University of Hong Kong.

10 May 2010

Staff attended the sharing session from

Mr. Thomas Mehrmann, CEO of Ocean

Park Corporation organised by Bradford

University.

13 May 2010

Ms Amy Lam, divisional council member,

attended the seminar on ‘Transfer

pricing with the State Administration of

Taxation’ organised by the Inland Revenue

Department, HKSAR.

14 May 2010

Staff attended the IBM cognos finance

forum 2010.

26 May 2010

Staff attended the Manchester Business

School seminar on ‘How to turn your

social network into business capital and

assets’ by Professor Gilbert Wong .

31 May 2010

Staff attended the Hong Kong General

Chamber of Commerce cocktail reception

and AGM.

31 May 2010


and Mr Damian Yip, Divisional Director,

attended the professional institutions in

Hong Kong cocktail reception organised

by UK Trade & Investment.

3 June 2010

Staff attended the promotional

symposium & luncheon of the 14th CIFIT

and World Investment Forum 2010.

3 June 2010

Staff attended the CIMA-CUHK SCS

Professional Diploma Programme in

Management Accounting graduation

dinner.

11 June 2010

Staff attended KPMG executive breakfast

briefing on IFRS update: impairment and

amortised cost?

11-16 June 2010


attended the Shanghai world expo study

trip organised by Accounting Resource

Centre, CIMA, ACCA, AIA, AWAHK, CGA,

CMA Canada, CPA Australia, IAE, CA, SCAA,

TIHK.

22 June 2010


attended the luncheon organised by the

Accounting Resource Centre.

9 July 2010

Staff attended the open day of Caritas.

31 July 2010

Mr Leo Cheung, Divisional Immediate

Past President, attended the innovation

entrepreneur of the year 2010 judging

day

organised by the City Junior Chamber.

19 August 2010

Mr Leo Cheung, Divisional Immediate

Past President attended the innovation

entrepreneur of the year 2010

award

presentation ceremony organized by the

City Junior Chamber.

20 August 2010

Staff attended the 10th anniversary dinner

of IT Accountants Association (ITAA).

15 September 2010

Mr Leo Cheung, Divisional Immediate Past

President, Ms Jackie Ko, Divisional Council

member and Mr Damian Yip, Divisional

Director attended the inauguration

ceremony of The Reanda International

Network.

16 September 2010

Mr Paul Chan, Divisional President and

Mr Damian Yip, Divisional Director of

CIMA Hong Kong attended the CICPA

inauguration ceremony and luncheon.


Other divisional engagements continued

16 September 2010

Mr Paul Chan, Divisional President attended

The Institute of Financial Accountants’ IFA-

SE inauguration ceremony and dinner.

28 September 2010

Mr Richard Kenworthy, Divisional Deputy

President attended the Annual Dinner of

CMA Canada.

15 October 2010

Staff attended the cocktail reception of

The Manchester Business School Alumni

Association (China)’s AGM.

29 October 2010


President attended the CPA Congress

2010 in Hong Kong – ‘Navigate the New’

organized by CPA Australia.

2 November 2010

Dr Li Wing Sun, Divisional Vice President,

attended the CGA-Annual Dinner.

6 November 2010

Mr Paul Chan, Divisional President,

attended the Anniversary Banquet 2010 of

the Open University of Hong Kong.

8 November 2010


President, attended the opening ceremony

of the 'River of Wisdom- Animated Version

of the Riverside Scene at Qingming

Festival' organised by the Leisure and

Cultural Services Department, HKSAR.

10 November 2010

Staff attended the Hong Kong General

Chamber of Commerce’s luncheon.

10 November 2010

Staff attended the HKU SPACE Alumni

Social Enterprises e-Society (SEES)

launching ceremony.

11 November 2010

Staff attended the Congregation of City

University of Hong Kong.

19 November 2010

Staff attended the China Enterprises

Economic Research Study Centre’s

luncheon.

29 November 2010

Staff attended the 2010 Prize Presentation

Ceremony of the Faculty of Business and

Economics, The University of Hong Kong.

1 December 2010

Staff attended the CFO Innovation Asia

Forum.

8 December 2010

Staff attended the 45th Anniversary

Banquet of CUSCS.

10 December 2010


President, attended the HKIRD Sports

Association’s Annual Dinner.

An overview

13

13 December 2010

Mr Paul Chan, Divisional President attended

the 20th Anniversary Seminar cum Annual

Luncheon of HK College of Technology’s

Information Service Centre of Professional

Studies.

13 December 2010

Mr Paul Chan, Divisional President

attended the HKIHRM’s Annual Luncheon

2010.


Media coverage

12 January 2010 - CFO Innovation AsiaInterview with Charles Tilley, CIMA Chief Executive on the management accounting and CIMA professional business qualification.

19 January 2010 - Jiu Jik and Jiu Jik onlineInterview with Damian Yip, Divisional Director of CIMA Hong Kong, regarding CIMA Global Business Challenge 2011.

19 February 2010 - Recruit Interview with Damian Yip, Divisional Director of CIMA Hong Kong on changing mindset of accounts and to strengthen management accounting skills.

15 May 2010 - A PlusInterview with Aubrey Joachim, CIMA President on urging management accountants to lead governance change and help companies focus on bigger picture rather than concentrating on technical details in order to provider real information to their bosses and influence strategy.

30 June 2010 - Jiu Jik15 July 2011 - Sing Tao Daily15 July 2011 - Oriental DailyArticle reporting the Global Business Challenge Hong Kong final where students from the University of Hong Kong has won the competition, and is competing with other winners in Malaysia August 2011.

8 July 2010 - MetrodailyInterview with CIMA and the University of Hong Kong School of Professional and Continuing Education (HKU SPACE) on the offering of the first Islamic Finance certificate and advanced certificate courses in Greater China.

10 July 2010 - Talent Management Introduction of CIMA, our professional qualification and course information.

12 August 2010 - MetrodailyAn article interview on CIMA Masters Gateway Exam with Damian Yip, Divisional Director of CIMA Hong Kong and Albert Hung, Associate Head of College of Business and Finance, HKU SPACE.

13 August 2010 - Tai Kung Pao13 August 2010 - Ming Pao13 August 2010 - Metrodaily13 August 2010 - Headline13 August 2010 - Sing Tao Daily13 August 2010 - Sing PaoPress conference held the day before regarding students from HKU winning the CIMA 2010 Global Business Challenge Grand final.

6 September 2010 - HK Economic Times Interview with Damian Yip, Divisional Director of CIMA Hong Kong on how MBA holders can help formulating strategies and quantify performance via pursuing the CIMA professional qualification.

17 September 2010 - Mingpao JumpArticle on the co-branded professional diploma programmes jointly organized by CIMA and the School of Continuing and Professional Studies, The Chinese University of Hong Kong (CUHK SCS).

28 September 2010 - AM730An interview on professional diploma programmes with Damian Yip, Divisional Director of CIMA Hong Kong and Dr. Brandon Ng, Associate Director of CUHK SCS.

19 October 2010 - The StandardAn article interview with Damian Yip (CIMA) and Albert Hung (HKU SPACE) on 'Getting to the heart of business decision making'.

142010 - An overview


Meetings attended by members of the divisional council(January 2010 to December 2010)Name Divisional Executive Chan Kai Chi Kenneth 6/7 5/5 Chan Kin Lok Paul 3/7 3/5 Cheung Wai Yi Rachel 3/3 Cheung Wan Yin Leo 6/7 5/5 Chui Francis 1/3Goddard Aidan 5/7Ho King Lam Kingston 7/7 4/5Kenworthy Richard 6/7 3/5Ko Yung Lai Jackie 2/3Lam Yuen May Amy 6/7 2/2Li Wing Sun 5/7 3/3

Members and students services committeeChairman Amy Lam Vice Chairman Artie Ng Nicholas Allard Jasper Chung Rachel Cheung Francis Chiu Rebecca Chu Aidan Goddard

Past divisional presidents

R Smith 1973-1974Joseph M Lai 1974-1975 K K Yeung 1975-1976William Parker 1976-1978 R Smith 1978-1979 Joseph M Lai 1979-1980P D Morgan 1980-1981 H K Poon 1981-1982 W G N Manning 1982-1983Kenneth K C Chan 1983-1984 Patrick K C Yeung 1984-1985P M Kam 1985-1987Julian C W Leung 1987-1988 W G N Manning 1988-1989 Stanford Miller 1989-1992Michael Y L Chan 1992-1993

Staff in Hong Kong (as of May 2010)Divisional Director Damian Yip Senior Executive, Member & Student Services Yannie Lau Senior Executive, Business Operations Cherry Chu Marketing & Development Manager Scott Lee

Cameron HonJackie KoAlan LamLeong Khai KongSamuel Ng Andy Tsang Ng Wai Cheong ArtieWong Suk Fun

15

Divisional council, committee membersand representatives

Ellena Y K Au 1993-1994Jimmy K W Pun 1994-1995Louis N H Lee 1995-1996Simon T W Leung 1996-1997 Peter W M Wong 1997-1998Anthony N T Chan 1998-1999 Roger M Y Ho 1999-1999 (Dec) Alan C M Wong 2000-2001Teddy T M Iu 2001-2002 Peter C W Choy 2002-2004 Paul Yeung 2004-2005Albert Y K Law 2005-2006 (Apr)Peter C W Choy 2006-2007 Michael Y L Chan 2007-2009Leo WY Cheung 2009-2010

Summ

ary accounts

Name Divisional Executive Ng Wai Cheong Artie 6/7To Man Chau Gordon 1/7Tsui Hung Sang Hudson 5/7Yeung Chun Pong Paul 5/7Luk Wai Leong Walton 5/7

Honorary OfficersDivisional President Paul ChanDivisional Deputy President Richard Kenworthy Divisional Vice President Li Wing SunDivisional Immediate Past President Leo Cheung


16

Independent auditor's report to the members of the Chartered Institute of Management Accountants (Hong Kong division)

ANDREW MA DFK (CPA) LIMITED

Certified Public Accountants

YAU WAI HING, STEPHEN

Practising Certificate No. P03392

Hong Kong, 28 February 2011

We have audited the financial statements of the Division set

out on pages 17 to 28, which comprise the balance sheet as at

December 31, 2010, and the income and expenditure account,

statement of changes in head office funds and statement of

cash flows for the year then ended, and a summary of significant

accounting policies and other explanatory notes.

Divisional council's responsibility for the financial

statements The Institute's constitution and by-laws require the

Divisional Council to prepare financial statements that give a true

and fair view in accordance with Hong Kong Financial Reporting

Standards issued by the Hong Kong Institute of Certified Public

Accountants, and for such internal control as the Divisional Council

determine is necessary to enable the preparation of financial

statements that are free from material misstatement, whether due

to fraud or error.

Auditors' responsibility

Our responsibility is to express an opinion on these financial

statements based on our audit and to report our opinion solely

to you, as a body, in accordance with the Institute's constitution

and by-laws, and for no other purpose. We do not assume

responsibility towards or accept liability to any other person for

the contents of this report.

We conducted our audit in accordance with Hong Kong

Standards on Auditing issued by the Hong Kong Institute of

Certified Public Accountants. Those standards require that we

comply with ethical requirements and plan and perform the

audit to obtain reasonable assurance about whether the financial

statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence

about the amounts and disclosures in the financial statements.

The procedures selected depend on the auditor's judgment,

including the assessment of the risks of material misstatement

of the financial statements, whether due to fraud or error. In

making those risk assessments, the auditor considers internal

control relevant to the Division's preparation of financial

statements that give a true and fair view in order to design audit

procedures that are appropriate in the circumstances, but not

for the purpose of expressing an opinion on the effectiveness of

the Division's internal control. An audit also includes evaluating

the appropriateness of accounting policies used and the

reasonableness of accounting estimates made by the Divisional

Council, as well as evaluating the overall presentation of the

financial statements.

We believe that the audit evidence we have obtained is sufficient

and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements give a true and fair view

of the state of the Division's affairs as at December 31, 2010,

and of its surplus and cash flows for the year then ended in

accordance with Hong Kong Financial Reporting Standards.


2010 2009

Note HK$ HK$

Non-current assets

Property, plant and equipment 3 -- 48,586

Current assets

Inventories 4 40,327 23,513

Accounts receivable 5 25,743 56,741

Amount due from Head Office 6 72,338 --

Deposits and prepayments 274,149 305,149

Cash and bank balances 458,850 270,546

871,407 655,949

Current liabilities

Accrued expenses 48,381 42,267

Net current assets 823,026 613,682

823,026 662,268

Financed by :

Head Office funds 823,026 662,268

Approved by the Divisional Council

Treasurer Divisional President Divisional Director

See accompanying notes

17

The Chartered Institute of Management Accounts (Hong Kong division)Balance sheet As at 31 December 2010 (Expressed in Hong Kong dollars)

Summ

ary accounts


18

2010 2009 HK$ HK$ Income Subvention from Head Office 2,025,937 952,004Workshop and seminar income, net of seminar wxpenses 9,275 78,843Bank interest income -- 52Sundry income 79,019 81,160 2,114,231 1,112,059

Expenses Advertising and promotions 411,392 220,998 Auditors' remuneration 40,000 36,000 Bank charges 930 3,513 Building management fees 82,878 82,878 Depreciation 48,586 48,586 Donations -- 15,000 Insurance 20,400 22,591 Members and corporate affairs 252,295 212,349 Miscellaneous 88,059 119,977 Office supplies -- 31,995 Photocopying 35,916 14,609 Postage and courier 21,235 28,081 Printing and stationery 10,221 9,390 Professional fees 53,440 7,260 Property, plant and equipment written off -- 6,470 Rent, rates and air-conditioning 770,961 775,600 Salaries and allowances 29,350 24,200 Staff training 21,611 24,388 Telecommunications 22,875 25,554 Travelling - local 23,770 28,014 Travelling - overseas 18,554 40,886 Water, electricity and gas -- 16,101 1,952,473 1,794,440 Surplus/(Deficit) for the year 161,758 (682,381)

Total comprehensive income transferred to Head Office Funds 161,758 (682,381) See accompanying notes

The Chartered Institute of Management Accounts (Hong Kong division)Income and expenditure accountYear ended 31 December 2010 (Expressed in Hong Kong dollars)


19

The Chartered Institute of Management Accounts (Hong Kong division)Statement of changes in head office fundsYear ended 31 December 2010 (Expressed in Hong Kong dollars)

The Past President General General Award Fund Reserve Fund Total HK$ HK$ HK$ HK$

Balance at December 31 2008 1,338,149 5,000 3,000 1,346,149

Fund applied to award student for the year -- -- (1,500) (1,500)

Total comprehensive income for the year (682,381) -- -- (682,381)

Balance at December 31 2009 655,768 5,000 1,500 662,268

Fund applied to award student for the year -- -- (1,000) (1,000)

Total comprehensive income for the year 161,758 -- -- 161,758

Balance at December 31 2010 817,526 5,000 500 823,026

Summ

ary accounts


20

2010 2009 HK$ HK$

Net cash inflow/(outflow) from operating activities (see note below) 189,304 (475,409)

Cash from/(used in) investing activitiesBank interest income -- 52 Purchase of property, plant and equipment -- (6,470)

Net cash used in investing activities -- (6,418)

Cash from/(used in) financing activitiesDecrease in the past president reward fund (1,000) (1,500)

Net cash used in financing activities (1,000) (1,500)

Net increase/(decrease) in cash and cash equivalents 188,304 (483,327)

Cash and cash equivalents at beginning of the year 270,546 753,873

Cash and cash equivalents at end of the year 458,850 270,546

Analysis of the balances of cash and cash equivalentsCash and bank balances 458,850 270,546

NOTE TO THE STATEMENT OF CASH FLOWS

Reconciliation of surplus/(deficit) to net cash inflow/(outflow) from operating activities :

Surplus/(Deficit) for the year 161,758 (682,381)Adjustments for :Bank interest income -- (52)Depreciation 48,586 48,586 Property, plant and equipment written off -- 6,470

Operating surplus/(deficit) before working capital changes 210,344 (627,377)

(Increase)/Decrease in inventories(Increase)/Decrease in accounts receivable 30,998 7,182 (Increase)/Decrease in amount due from Head Office (72,338) 257,315 (Increase)/Decrease in deposits and prepayments 31,000 (53,162)Increase/(Decrease) in accounts payable -- (47,957)Increase/(Decrease) in accrued expenses 6,114 (11,795)

Net cash inflow/(outflow) from operating activities 189,304 (475,409)

The Chartered Institute of Management Accounts (Hong Kong division)Statement of cash flowsYear ended 31 December 2010 (Expressed in Hong Kong dollars)


21

The Chartered Institute of Management Accounts (Hong Kong division)Notes to the financial statementYear ended 31 December 2010 (Amounts expressed in Hong Kong dollars)

1. General information

The Chartered Institute of Management Accountants was

incorporated in the United Kingdom under a Royal Charter and

operates the Hong Kong Division at the registered address at

Suites 1414-1415, 14/F., Jardine House, Central, Hong Kong.

The principal activities of the Hong Kong Division include,

inter alia, the promotion of the science of management

accountancy and providing member services and student

supports by organising networking events and seminars.

2. Significant accounting policies

The financial statements have been prepared in accordance

with the Hong Kong Financial Reporting Standards (HKFRSs)

covering the Hong Kong Accounting Standards (HKASs) issued

by the Hong Kong Institute of Certified Public Accountants.

Significant accounting policies adopted by the Division in

preparing the financial statements are set out below.

a) Basis of preparation of the financial statements

The financial statements are prepared under the historical

cost convention, as modified where appropriate by

revaluation of certain financial assets and financial

liabilities.

The accounting policies used in the financial statements

are consistent with those followed in the preparation of

the financial statements for the year ended December 31,

2009, except that in the current year, the Division has

applied for the first time the following amendments that

are effective for the current year and are relevant to the

operations of the Division:

HKFRSs (Amendments Improvements to HKFRSs 2009

The improvements to HKFRSs 2009 comprise a number of

minor changes but which have not resulted in any change

of accounting policies in the context of the Division.

The Division has not early applied the following standards

and amendments which have been issued but are not yet

effective:

HKFRSs (Amendments) Improvements to HKFRSs 2010

HKFRS 9 Financial instruments (relating to

the classification and measurement

of financial assets and financial

liabilities)

HKAS 24 (Revised) Related party disclosures

The Divisional Council anticipates that these standards

and amendments not yet applied will have no material

impact on the Division's results of operations and financial

position.

b) Foreign currency transactions

The Division maintains its books of account in its

functional currency (i.e. the currency of the primary

economic environment in which the entity operates).

Foreign currency transactions are translated during the

year at the rates of exchange ruling at the dates of the

transactions. Monetary assets and liabilities denominated

in foreign currencies at the reporting date are retranslated

at the rates of exchange ruling at that date. Non-monetary

items carried at fair value that are denominated in foreign

currencies are retranslated at the rates prevailing on the

date when the fair value was determined. Non-monetary

items that are measured in terms of historical cost in a

foreign currency are not retranslated.

Exchange gains or losses arising on the retranslation of

monetary items are included in the income and expenditure

account. Exchange differences arising on the retranslation

of non-monetary items carried at fair value are included

in the income and expenditure account except for

differences arising on the retranslation of non-monetary

items in respect of which gains or losses are recognised

in other comprehensive income, in which cases, the

exchange differences are also recognised directly as other

comprehensive income under a reserve account in Head

Office Funds separate from General Funds.

c) Financial instruments

A financial instrument is defined as any contract that gives

rise to a financial asset of one entity and a financial liability

or equity instrument of another entity.

Summ

ary accounts


22

The Chartered Institute of Management Accounts (Hong Kong division)Notes to the financial statement (continued)Year ended 31 December 2010 (Amounts expressed in Hong Kong dollars)

Financial assets/liabilities are recognised in the balance

sheet when the Division becomes a party to the

contractual provisions of the instrument.

A) Measurement of financial assets

A financial asset is measured at its fair value upon initial

recognition. The measurement of financial assets subsequent

to initial recognition relating to loans and receivables, which

are the financial assets relevant to the Division, are as

follows:

Loans and receivables are non-derivative financial assets

with fixed or determinable payments that are not quoted

in an active market, and that are created by the Division by

providing goods, service or money directly to a receivable.

These include trade receivables, time deposits, loans and

other receivables.

Loans and receivables are recognised in the balance sheet

under current assets, except for maturities greater than

12 months after the reporting date which are classified

as non-current assets. All purchases or sales of financial

assets that require delivery of assets within the time frame

established by regulation or convention in the marketplace,

are recognised or derecognised on a trade date basis.

As at the reporting date, loans and receivables are carried

at amortized cost using the effective interest method, less

any identified impairment losses. An impairment loss is

recognised in the income and expenditure account when

there is objective evidence that the asset is impaired, and

is measured as the difference between the asset's carrying

amount and the present value of the estimated future

cash flows discounted at the original effective interest

rate. Impairment losses are reversed in subsequent periods

when an increase in the asset's recoverable amount can

be related objectively to an event occurring after the

impairment was recognised, subject to a restriction that the

carrying amount of the asset at the date the impairment is

reversed does not exceed what the amortized cost would

have been had the impairment not been recognised.

B) Measurement of financial liabilities

A financial liability is measured at its fair value upon initial

recognition. Financial liabilities relating to borrowings

and payables, which are the financial liabilities relevant

to the Division, are measured at amortised cost using the

effective interest rate method as at the reporting date

subsequent to initial recognition.

Transaction costs that are directly attributable to the

acquisition or issue of the above types of financial assets

and financial liabilities are added to or deducted from the

fair value of the financial assets or financial liabilities, as

appropriate, on initial recognition.

d) Property, plant and equipment and depreciation

Property, plant and equipment are stated at cost less

accumulated depreciation and impairment losses, if

necessary.

All capital expenditure up to the unit value of HK$7,000

are written off in the year of acquisition.

Depreciation is provided on a straight line basis on the

cost of property, plant and equipment and calculated at

the following rates per annum based on their respective

estimated useful lives:

Leasehold improvements Over the terms of the lease

Furniture and fixtures 100%

Hi-tech and other office

equipment (including

computer system) 33-1/3%

e) Inventories

Inventories are valued at the lower of cost and net

realizable value. Cost is calculated using the first-

in first-out basis and comprises all costs of purchase,

costs of conversion and other costs incurred in bringing

the inventories to their present location and condition.

Net realizable value is the estimated selling price at

which inventories can be sold in the normal course

of business after allowing for the estimated costs of

realization.


23


f) Impairment of assets

Assets that have an indefinite useful life are not subject

to amortization, but are at least tested annually for

impairment and are reviewed for impairment whenever

events or changes in circumstances indicate that the

carrying amount may not be recoverable. Assets that are

subject to amortization are also reviewed for impairment

whenever events or changes in circumstances indicate that

the carrying amount may not be recoverable or that an

impairment loss previously recognised no longer exists or

may have decreased.

If the recoverable amount of an asset is estimated to

be less than its carrying amount, the carrying amount

of the asset is reduced to its recoverable amount.

Impairment loss is recognized as an expense immediately,

unless the relevant asset is carried at revalue amount,

in which case the impairment loss is firstly charged

against other comprehensive income to the extent

of the amount held in the revaluation reserve in the

Head Office Funds with any excess recognized as an

expense.

Where an impairment loss subsequently reverses, the

carrying amount of the asset is increased to the revised

estimate of its recoverable amount, which is restricted to

the carrying amount that would have been determined had

no impairment loss been previously recognized for the asset.

A reversal of an impairment loss is recognized as income

immediately, unless the relevant asset is carried at a revalue

amount, in which case the reversal of the impairment

loss is treated as a revaluation increase under other

comprehensive income.

g) Operating leases

Lease payments under operating leases are accounted for

in the income and expenditure account on a straight line

basis over the period of the respective leases.

h) Revenue recognition

Revenue is recognized when it is probable that the

economic benefits associated with the transaction will

flow to the Division and the amount of the revenue can be

measured reliably.

i) Subvention from head office is recognised when funds

are received for expenses approved by the Division's

Head Office.

ii) Workshop and seminar income is recognized upon

completion of training or services rendered.

iii )Interest income is recognized on an accrual basis that

takes into account the effective yield on the assets.

i) Cash equivalents

Cash equivalents are short-term, highly liquid investments

that are readily convertible into known amounts of cash

and are subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash

equivalents also include advances from banks repayable

within three months from the date of the advance.

j) Provisions

Provisions are recognized when the Division has a present

legal or constructive obligation as a result of past events, it

is probable that an outflow of resources will be required to

settle the obligation, and a reliable estimate of the amount

can be made. Where the Division expects a provision

to be reimbursed, the reimbursement is recognized as

a separate asset when the reimbursement is virtually

certain.

Where it is not probable that an outflow of economic

benefits will be required, or the amount cannot be

estimated reliably, the obligation is disclosed as a

contingent liability, unless the probability of outflow of

economic benefits is remote.

k) Related parties

Two parties are considered to be related if one party has

the ability directly or indirectly to control the other party or

exercise significant influence over the other party in making

financial and operating decisions. Parties are also considered to

be related if they are subject to common control or common

significant influence, or if they are key management personnel

of the Division or its head office, or if they are close members of

the related parties.

Summ

ary accounts


24


3. Property, plant and equipment

Leasehold Furniture and improvements fixtures Total HK$ HK$ HK$ HK$

2010 At cost At beginning and end of the year 268,199 38,094 84,313 390,606

Accumulated depreciation At beginning of the year 219,613 38,094 84,313 342,020 Charges for the year 48,586 -- -- 48,586

At end of the year 268,199 38,094 84,313 390,606

Net book value At end of the year -- -- -- --

2009 At cost At beginning of the year 268,199 38,094 84,313 390,606 Additions -- -- 6,470 6,470 Written off -- -- (6,470) (6,470)

At end of the year 268,199 38,094 84,313 390,606

Accumulated depreciation At beginning of the year 171,027 38,094 84,313 293,434 Charges for the year 48,586 -- -- 48,586

At end of the year 219,613 38,094 84,313 342,020

Net book value At end of the year 48,586 -- -- 48,586

4. Inventories

2010 2009 HK$ HK$ At cost Study books and materials 40,327 23,513


25


5. Account receivables The following is an aged analysis of accounts receivable net of impairment losses at the reporting date : 2010 2009 HK$ HK$

Not past due 25,743 56,741

No interest is charged on the accounts receivable. The Divisional Council believes that no impairment provision is necessary in respect of these balances which, according to past experience, are considered fully recoverable. The Division does not hold any collateral over these balances.

6. Amount due from Head Office This account is unsecured, interest free and has no fixed terms of repayment.

7. Taxation Hong Kong Profits Tax has not been provided for in these financial statements as the Division has no assessable profits during the year.

8. Operating leases Rental payments in respect of leasehold land and buildings under operating leases for the year :

2010 2009 HK$ HK$

a) Rental payments in respect of premises under operating leases for the year 741,540 741,540 b) At the reporting date, the Division's future minimum lease payments under non-cancellable operating leases are payable as follows : - within one year 247,180 741,540 - in the second to fifth year inclusive -- 247,180

247,180 988,720

9. Related party transactions Certain part of the Division's operation was represented by transactions with related parties. These financial statements reflect the effects of those transactions on bases determined between the Division and its related parties.

During the year, the Division had the following material transactions with its related parties :

2010 2009 HK$ HK$

Subvention from Head Office 2,025,937 952,004 Sales of books to Shanghai Division of the Institute at cost 8,099 18,068

At end of the year, the Company also had certain account balances with its related companies or parties as stated in the preceding Note 6.

Summ

ary accounts


26


10. Critical accounting judgments and key sources of estimation uncertainty In the process of applying Division's accounting policies, which are described in note 2 above, management has made various estimates and judgments (other than those involving estimates) based on past experience, expectations of the future and other information. The key source of estimation uncertainty and the critical accounting judgments that can significantly affect the amounts recognised in the financial statements are set out below.

Depreciation of property, plant and equipment The Division reviews the useful lives and residual value of the property, plant and equipment periodically based on the conditions

of the assets and other regulatory requirements. If the estimates of useful lives for the assets are revised or there is a change in the useful lives, the amount of depreciation expenses recorded in future periods will change. Inventories

Management estimates the net realisable value for inventories based primarily on the latest invoice prices and current market conditions. The Division carries out an inventory review on a product-by-product basis at each reporting date and makes provision for impairment on obsolete and slow-moving items or write-off or write-down inventories to net realisable value.

Estimate of fair value of financial instruments The book values of financial assets and financial liabilities relevant to the Division are assumed to approximate their fair values.

11. Fund management

The Division's objectives when managing funds from head office are : a) To safeguard the Division's ability to continue as a going concern; b) To support the Division's membership retention and growth; and c) To provide funds for the purpose of strengthening the Division's risk management capability.

The Division regularly reviews and manages its fund requirements to ensure the Division's objectives are met taking into account of its current and future strategies.

The Division is not subject to either internally or externally imposed capital requirements.

12. Financial risk management The Division has classified its financial assets in the following category :

2010 2009 HK$ HK$

Loans and receivables

Accounts receivable 25,743 56,741 Amount due from Head Office 72,338 -- Deposits and prepayments 274,149 305,149 Cash and bank balances 458,850 270,546 831,080 632,436


27


The Division has classified its financial liabilities in the following category :

2010 2009 HK$ HK$

Financial liabilities at amortised cost

Accrued expenses 48,381 42,267 All financial instruments are carried at amounts not materially different from their fair values at the reporting date.

The Division is exposed to credit risk, liquidity risk and market risk arising in the normal course of its activities in respect of its

financial instruments. The Division's risk management objectives, policies and processes mainly focus on minimizing the potential adverse effects of these risks on its financial performance and position by closely monitoring the individual exposure. a) Credit risk The Division's credit risk is primarily attributable to accounts receivable and amount due from Head Office. The maximum

exposure to credit risk in the event of the counterparties' failure to perform their obligations as at the reporting date in relation to each class of recognised financial assets is the carrying amount of those assets as stated in the balance sheet. In order to minimize the credit risk, the Divisional Council has reviewed the recoverable amount of each individual receivable at each reporting date to ensure that adequate impairment losses are made for irrecoverable amounts. Summary quantitative data

2010 2009 HK$ HK$

Accounts receivable 25,743 56,741 Amount due from Head Office 72,338 -- 98,081 56,741

The Division has no significant concentration of credit risk.

b) Liquidity risk Liquidity risk is the risk that funds will not be made available to meet liabilities as they fall due. The Division's policy is to

regularly monitor its liquidity requirements to ensure that sufficient reserves of cash, credit facilities and/or financial support are maintained.

The following table details the remaining contractual maturities at the reporting date of the Division's non-derivative financial

liabilities and the earliest date the Division can be required to pay.

Summary quantitative data 2010 2009 HK$ HK$

Within 1 year or on demand Accrued expenses 48,381 42,267

The Division has no significant concentration of liquidity risk.

Summ

ary accounts


28

c) Market risk Market risk is the risk arising from movements in market variables such as interest rates.

Interest rate risk

The Division's exposure to cash flow interest rate risk arises mainly from its deposits with bank and the exposure is considered not significant.

Summary quantitative data

2010 2009 HK$ HK$ Floating rate financial assets Bank balances 404,761 255,107

13. Comparative figures

Certain comparative figures have been reclassified to conform with the current year's presentation.

14. Approval of the financial statements The financial statements were approved and authorized for issue by the Divisional Council on 1 March 2011.


Summ

ary accounts


Co

ntact details

29

CIMA AustraliaSuite 1305109 Pitt StreetSydney, NSW 2000T. +61 (0)2 9376 9900F. +61 (0)2 9376 9905E. [email protected]

CIMA BotswanaPhysical:Plot 50374Block 3 First Floor, Southern WingFairgrounds Financial CentreGaborone Postal:PO Box 403475GaboroneT. +267 395 2362 or 395 2366F. +267 397 2362 or 395 2366E. [email protected]

CIMA ChinaShanghai OfficeUnit 1508A15th floor of AZIA Center1233 Lujiazui Ring RoadPudong, Shanghai, 200120T. +86 (0)21 6160 1558F. +86 (0)21 6160 1568E. [email protected]

Beijing Office5th Floor, China Life Tower16 Chaoyangmenwai AvenueBeijing 100020Hotline. 400 820 4080E. [email protected]

Shenzhen OfficeRoom 55, 16/F, Citic City PlazaShennan Road Central, Shenzhen, 518031 P.R.ChinaT. +86 (0)755 3330 5150F. +86 (0)755 3330 5127E. [email protected]

Chongqing OfficeRoom 1202, Metropolitan TowerNo. 68 Zourong RoadYuzhong DistrictChongqing, 400010T. +86(0)21 63713538F. +86(0)21 63816175E. [email protected]

CIMA Hong KongSuites 200520th Floor, Tower OneTimes Square, 1 Matheson StreetCauseway Bay, Hong KongT. +852 2511 2003F. +852 2507 4701E. [email protected]

CIMA IndiaUnit 1-A-1, 3rd FloorVibgyor TowersC-62, G BlockBandra Kurla ComplexBandra (East), Mumbai – 400 051T. +91 22 42370100F. +91 22 42370109E. [email protected]

CIMA MalaysiaLots 1.03b & 1.05 Level 1KPMG TowerFirst Avenue, Bandar Utama47800 Petaling JayaSelangor Darul EhsanT. +60 (0) 3 77 230 230F. +60 (0) 3 77 230 231E. [email protected]

CIMA Middle EastOffice E01, 1st Floor, Block 3PO Box 502221Dubai Knowledge VillageAl Sofouh RoadDubai, UAET. +9714 4347370F. +9714 4341998E. [email protected]

CIMA PakistanNo. 201 2nd Floor, Business ArcadePlot No. 27-A Block-6 P.E.C.H.S.Shahra-e-FaisalKarachiT. +92 21 3432 2387F. +92 21 3432 2390E. [email protected]

CIMA Republic of IrelandBlock E, 5th FloorIveagh CourtHarcourt StreetDublin 2T. +353 (0) 1 6430400F. +353 (0) 1 6430401E. [email protected]

CIMA Singapore51, Goldhill Plaza #08-02Singapore 308900T. +65 6535 6822F. +65 6534 3992E. [email protected]

CIMA South Africa1st Floor, South West Wing198 Oxford RoadIllovo, JohannesburgPO Box 745Northlands 2116T. +27 (0)11 788 8723F. +27 (0)11 788 8724E. [email protected]

CIMA Sri Lanka356 Elvitigala MawathaColombo 5T. +94 (0)11 250 3880F. +94 (0)11 250 3881E. [email protected]

CIMA UK26 Chapter StreetLondon SW1P 4NPT. +44 (0)208 849 2251F. +44 (0)207 663 5442E. [email protected]

CIMA ZambiaPhysical:6053 Sibweni RoadNorthmead, LusakaPostal:PO Box 30640, LusakaT. +260 1 290 219F. +260 1 290 548E. [email protected]

CIMA ZimbabwePhysical:6th Floor Michael House62 Nelson Mandela AvenueHararePostal:PO Box 3831, HarareT. +263 (0)4 708 600 or 250745F. +263 (0)4 708 600E. [email protected]

Contact details

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http://www.cncima.com



emailto:[email protected]


http://www.cimahongkong.com










http://www.cimaglobal.com



CIMA Hong Kong Annual Review 201024 - 25 October 2011 | Cape Town SACIMA World Conference 2011

Chartered Institute of Management Accountants

CIMA Hong KongSuite 2005, Tower One, Times Square,1 Matheson Street,Causeway Bay,Hong Kong

T. +852 2511 2003F. +852 2507 4701E. [email protected]


http://www.cimahongkong.com

Documents

HONG KONG aNNual review 2010 locations docs/Hong Kong...CIMA Hong Kong Annual Review 2010 2010 2009 2008 Member population 83,487 79,757 76,363 2010 2009 2008 Student population 99,264