Consolidated Financial Statements - CIMA
REIMAGINEThe Chartered Institute of Management AccountantsConsolidated financial statements for the year ended 31 December 2019
Consolidated financial statements ii
Contents2President’s report9Financial performance review12The Audit and Finance Committee13Independent auditors’ report15Consolidated statement of comprehensive income16Consolidated statement of financial position17Consolidated statement of cash flows18Consolidated statement of changes in funds19Notes to the consolidated financial statements48CIMA’s Council and Committee membersConsolidated financial statements 1
President’s reportThe Chartered Institute of ManagementAccountants (CIMA ) celebrated its centenary year,beginning with an event for members on 8 March2019, marking 100 years since CIMA wasestablished. We celebrated the past and lookedforward to the future of the profession, re-imaginingwhat the future might look like. We followed this withglobal events to celebrate our profession, the work ofour members and students and their contributions tobusinesses and employers.While celebrating the work of our members we alsocontinued to advance our profession for the benefitof current and future members and students. Wecontinued the work to implement the outcomesfollowing the review of CIMA Council; completedresearch into the future of finance and launched thenew syllabus; established a new committee that isresponsible for oversight of global member supportstructures; improved member experience and serviceprovision; and delivered a refreshed Code of Ethics.The Association of International CertifiedProfessional Accountants (Association),which combines the strength of CIMA and theAmerican Institute of CPAs (AICPA ), also continuedto progress a number of key strategic initiatives formanagement accounting, which are set out in moredetail in the Association’s integrated report, adoptedby Council as a significant element of its ownreporting on 2019.The pursuit of our Royal Charter objects remains atthe forefront of activities within CIMA and theAssociation. Protections are in place to assure that;as well as commitments made by the Association inrespect of the same; and regular reports are made toCIMA Council by the Association. A formal annualfeedback report is also made by the Association CEOto CIMA Council to attest to the delivery of strategyand member value.CIMA and AICPA operate through the Associationfor the delivery of member and student services andsupport, and both Councils contribute to thedevelopment of the Association’s strategic planthroughout the year.Consolidated financial statements 2
The COVID-19 pandemicThe coronavirus (COVID-19) pandemic is causing enormousconsequences across the globe, and we know many of ourmembers, students and the accounting and finance communityat large, are experiencing uncertainty and concern. Our missionis to drive a dynamic accounting profession that is ready tomeet the demands of a constantly changing, disruptive world.This mission — our commitment to our members and students,the accounting profession and the people we serve — is moreimportant than ever. I ntroduced innovative campaigns to engage with our audiencein a new way, embracing new technology and new channels,significantly increasing our engagement.We are using technological advances to continue to supportour members and students. We are launching the FinanceLeadership Programme across the globe; providing continuityto our students by introducing online exams; delivering virtuallearning resources, including webcasts on how finance cannavigate business impact and planning. We are also creatinginformation sessions with experts from across industrysectors to discuss the accounting and finance implicationsof the coronavirus pandemic and in active discussions withgovernments across the globe to support and protect ourmembers and students. L aunched the CIMA Insights blog in March 2019, whichdelivers member value through educating, informing andengaging with members. This blog features a range oftopics with a particular focus on automation, blockchain,cybersecurity, data analytics, ethics, and soft skills requiredby management accountants. It also highlights the expertiseof our global management accounting research anddevelopment team, averaging over 20,000 views every month.Our activities in 2019During the year, there were 112,617 members, an increase of2,124 members, and the total student population was 106,364.The Association supports and delivers value to members ofCIMA and AICPA, and most members of CIMA and AICPA arealso members of the Association. The combined resources anddiverse expertise of the teams drawn from both CIMA and theAICPA to form new centres of excellence within the Associationhave meant that member and student needs can be respondedto more efficiently across the globe, and future needs anticipatedmore effectively.As well as services and support delivered via the Association,CIMA carries out its global governance and regulatoryresponsibilities in relation to standard setting, licensing,monitoring and compliance.In 2019 we: C elebrated our centenary through several events held inthe UK and across the globe highlighting the Institute’sachievements and contributions to the profession. L aunched our updated CGMA Competency Frameworkand Syllabus in January 2019. This was developed followingextensive research into the Future of Finance, enabling usto reimagine our profession by understanding how the roleof finance is changing in the digital age. We support ourmembers to learn, unlearn and relearn to keep their skillsand knowledge up to date. D eveloped an updated Code of Ethics and, to support Octoberethics month, launched a six-day Facebook Messengerchallenge on ethics. Each day of the challenge was designedto link back to one of our resources for an interactive wayto introduce the Code of Ethics changes and reinforce theimportance of ethics to our members and followers. P osted more than 1.3 million jobs last year onto CIMAMyJobs board, and as a result we saw a 40% increasein job applications. We are expanding our support to notonly help our members apply for jobs but also obtain thejobs. On 15 January 2020, the Association launched theAssociation Careers Hub, a consolidated careers hub for bothmanagement and public accounting. The Hub contains globalmanagement and public accounting jobs, career advice, CVand interview coaching products and services, virtual careerfairs, and more, with new services being added regularly. B egan the endpoint assessment for Level 4 and Level 7accounting apprenticeships, exceeding our targets. Level 4is equivalent to the first year of an undergraduate degree andaligns with the CIMA Certificate in Business Accounting, andLevel 7 is equivalent to a master’s degree and the full CIMAqualification. We approved a policy that, on completion of aLevel 7 apprenticeship, an apprentice can apply to become amember of CIMA. C ontinued to improve member experience and serviceprovision. We have addressed some of the basic issueswith payments, and we are seeing an improvement in theexperiences of our members and students. More work istaking place in this area as we modernise our core systems,remove friction, and re-engineer the experience, keepingmembers at the heart of what we do. R aised our profile and awareness of management accountingthrough media, engagement with employers and our globaladvocacy function. We also championed the strength andrelevance of management accounting through convocationsand student events, instilling ambition in candidates tocomplete their student journey and reimagine progressionto membership. L aunched the Digital Mindset pack comprising free CPDbundles, including on-demand learning courses focused ondeveloping future-focused skill sets needed for a digital era.Consolidated financial statements 3
T ook the CGMA Leadership Academy for aspirational newmembers to Kuala Lumpur, extending the global reach of thisinitiative. Members received intensive training on strategicthinking, self-leadership, volunteerism and professional issues,and I am pleased that members are now volunteering forgovernance roles within CIMA and the Association. C ontinued to build relationships with leading global employers,providing our members with the latest market insights andinternational trends to help them stay informed and confidentin today’s rapidly changing business environment. C ontinued to provide input into the strategic direction ofthe Association of International Certified ProfessionalAccountants (the Association).The UK Corporate Governance CodeCIMA is committed to reaching and maintaining the higheststandards of corporate governance and in so doing supportsthe UK Corporate Governance Code, published by the FinancialReporting Council. The Code is principally for listed companies,and, as such, CIMA is not obliged or in some respects able tofollow it completely. However, CIMA Council is committed toadopting best practice governance processes and thereforechooses to apply the Code to CIMA’s operations as far as it isapplicable and appropriate for a professional body incorporatedby Royal Charter. This report aims to show how the Council hasadopted and supported the Code’s principles in the interests ofbest practice.Council is also cognisant of its stewardship responsibilitiestowards the profession and works, where applicable, inaccordance with the principles of the UK Stewardship Code.It gives careful attention to its responsibility to drive change,so that the profession remains well-positioned and ourmembers are equipped with the right skills and knowledge tomeet the growing demands of business while protecting thepublic interest, including work on social, sustainability, andenvironmental responsibilities.The CouncilThe governance, overall oversight, and control of the Instituteare the responsibility of the Council (‘Council’), which currentlycomprises up to 58 members. Council is led by a team ofHonorary Officers including the President, the Deputy President,the Vice President and the Immediate Past President. The othermembers include up to 38 Fellows elected by constituency; upto 12 members co-opted based on the skills and experiencethey bring; and 4 members of the AICPA who are also CGMAdesignation holders.The Council is responsible for setting standards, for the regulationof members in line with the objects of CIMA’s Royal Charter, andfor representing the interests of, and reporting to, the generalmembership. It approves any changes to the regulations whichform part of the constitutional documents and is the ultimateauthority within CIMA. All members of the Council are equallyresponsible for ensuring that the best interests of the generalmembership are considered in the decision-making process.Upon appointment, all new members of the Council are providedwith an induction designed to provide closer understanding ofCIMA’s governance structure, role, responsibilities and the wayin which the Council meetings are conducted. Members of theCouncil may not be remunerated for their work for CIMA, exceptas permitted by the Royal Charter, Bye-laws and Regulations.A register of Council members’ interests is maintained, whichdetails any personal or business interests that could give rise toa conflict of interest between CIMA and other bodies.Presidential termAs President, I was pleased and proud to have been thehonorary leader of CIMA for one year, during which time Ichaired the Council and represented the interests of CIMAexternally, including to the Government, the public, theaccounting profession, regulatory bodies, employers, and themedia. During this year, I was also Chair of the Board of theAssociation of International Certified Professional Accountants(the Association) and the Management Accounting Board of theAssociation.At the beginning of the presidential year, I presented to Councila plan on how we could advance the CIMA and Associationstrategy and engage with Council on that. The theme for CIMAand the Association was ‘Reimagine’ as we seek to reimaginewhat we do and how we do it. Our proposition was ‘If it doesn’tchallenge you, it doesn’t change you. Growth happens outsideour comfort zones.’ We set out to explore how we can reimaginethe profession, gaining global insights into what fellow financeprofessionals are doing to keep our profession relevant whilemaximising opportunities in a rapidly changing world.During the year, we focused on: E ngaging members and students with our focus on reimagining the profession and ensure their ongoing abilityto meet future challenges. In our outreach, we heard frommembers that they are concerned about their careers, theylook to our organisation for the latest market insights andinternational trends, they count on our global advocacy, andthey want their member experience to be seamless. We areanswering these requests and more with new and updatedofferings outlined earlier in this report. D emonstrating the strength of our Association as Presidentof CIMA and Chair of the Association Board, ensuringconnectivity and understanding of our unique position andinfluence and the benefits it provides to our members andstudents. D elivering a digital profession by delivering on the outcomesof our future of finance research, encouraging membersto reimagine how they add value within organisations, andbringing human intelligence to digitalisation.Consolidated financial statements 4
A subject close to all our hearts, and one we have championed,is social mobility. In September, the CIMA President’s Eventincluded a conversation with Dr Wanda Wyporska, who foundedthe Equality Trust charity, which works to reduce socioeconomicinequality. Wanda told us about her journey, shining a light onthe challenges she encountered and educating the audienceabout how they are in a position to encourage social mobility intheir organisations. As a first step toward social mobility, we arestarting an initiative to broaden diversity and inclusivity withinCIMA’s governance.Throughout the year we reported to Council on how we met theobjectives identified at the beginning of the year, through themeetings we held and organisations and individuals we visitedwithin the target groups. Our objectives include: Drive member engagement and value. E mphasise how the competency framework and theprofessional qualification, and our regular updates to both,strengthen the employability of our members and futuremembers. P rofile CIMA and the Association as the leader in driving thefuture of finance and the expert in defining the future skills andcompetencies needed. D rive awareness and recognition that we are the mostinfluential body of professional accountants. Strengthen our collaborative network of partners.— which in 2019 included improving the customer experience— data analytics, and digital readiness. Council’s strategicdiscussions form part of the input to the Association’s strategy.Council reviewIn 2018, Council posed the question as to whether it is fit forpurpose going forward and, to that end, commenced a reviewof Council, setting up a working party. The Working Partyconcluded its assessment in October 2018 and presentedoptions of what a future Council might need to look like todischarge its responsibilities effectively. These options includerefocusing Council meetings to reflect CIMA’s global footprint,refreshing the number and length of Council meetings, reviewingCouncil members’ tenure and size of Council, and widening thegroup who can be members of Council, including introducingAssociation members and lay members onto Council.Council members voted on the options, leading to proposalsthat were developed for approval by Members last year withmore to follow, most likely in 2021. Honorary Officers have beenmeeting with executives to develop implementation plans, eachtaking lead responsibility for an aspect of the implementationthat aligns with their Honorary Officer area of responsibility.This has allowed for the proposals to be planned and developedto a sufficient level before submission to the membership at aGeneral Meeting. B uild/deepen our relationship with key employers and drive thevalue and demand of the designation.Governance S howcase that we are at the forefront of driving the relevanceof the finance function globally.Under the Charter, the chief executive is the most senior staffmember of CIMA by whatever title they may be known. The roleof the chief executive was fulfilled by the Secretary General. Sheis the prime source of operational and governance informationand advice for the Council and committee members and,with the assistance of the Corporate Affairs department, isresponsible for ensuring that adequate and timely informationis available to allow them to prepare for each meeting.Council meetingsThe President, together with the team of other Honorary Officers,provides direction to the Council in its deliberations and isresponsible for ensuring the democratic process of the Counciland the management of the meetings. The Council met fivetimes in 2019, of which three meetings were in-person and twomeetings were virtual. At each of its meetings, it has focused onmatters of strategic importance to management accounting aswell as covering mainstream business items. Going forward,and in line with the changes enabled via the Council review,we will be holding two face-to-face meetings, each of twodays duration, with intermittent and shorter virtual meetingsin-between. One of those face to face meetings will be held inLondon in tandem with the AGM, and the other in one of ourkey markets to enable greater engagement with members andstudents across the globe.As a result of restructuring the frequency and duration of itsmeetings, Council is now able to devote much more of itsmeeting time to debating matters of strategic importance to theprofession, engaging with external experts on change driversThe Council delegates’ activities within CIMA’s governancein line with an annually updated scheme of delegations andauthorisations to the appropriate committees and the SecretaryGeneral. Following the formation of the Association, theCouncil has also authorised the Association Board to carry outcertain strategic, service and support activities. The Council,however, retains responsibility for ensuring that CIMA’s RoyalCharter objects and responsibilities continue to be upheld, andfor ensuring the Association delivers on its assurances andprotections in respect of the same.To ensure the Council is meeting its obligation to consider thebest interests of members, all members of CIMA are entitledto attend the AGM, to vote in person or by proxy on mattersrequired to be referred to the membership, and are invited tocomplete regular satisfaction surveys.Consolidated financial statements 5
Financial reporting responsibilitiesof the CouncilThe Bye-laws of CIMA require the Council to ensure that financialstatements are prepared for each financial year, and that theygive a true and fair view of the state of affairs including asurplus or deficit for that period.In preparing those financial statements, the Council, inaccordance with best practice, is required to: S elect suitable accounting policies and then apply themconsistently. M ake judgements and estimates that are reasonable andprudent. S tate whether applicable accounting standards have beenfollowed, subject to any material departures disclosed andexplained in the financial statements. E nsure that the financial statements are prepared on thegoing concern basis, unless it is inappropriate to presumethat CIMA will continue in business. P rovide the external auditor with all information required inorder for them to complete the audit.The Council is not aware of any relevant information that hasnot been disclosed to the external auditor. The Council isresponsible for ensuring the mainten
Consolidated financial statements 1 2 President’s report 9 Financial performance review 12 The Audit and Finance Committee 13 Independent auditors’ report 15 Consolidated statement of comprehensive income 16 Consolidated statement of financial position 17 Consolidated statement of cash flows 18
(CBA) where you must score 50% to pass each paper. All CBAs are set and controlled by CIMA and can be sat at BPP’s training centre in Bucharest. The regulations for and the contents of the assessments are strictly controlled by CIMA. You must have a CIMA ID before booking a CBA. BPP Romania is a CIMA CBA approved centre.
Consolidated Statements of Operations 8 Consolidated Statements of Comprehensive Income 9 Consolidated Statements of Changes in Equity 10 Consolidated Statements of Cash Flows 11 Notes to the Consolidated Financial Statements 1. Basis of preparation 12 2. Significant accounting policies
interim financial statements report 04 consolidated interim financial statements 28 financial statements 31 notes to financial statements 37 certification of the condensed consolidated interim financial statements pursuant to art. 154 bis, fifht paragraph, of legislative decree 58/98 and of art. 81 - ter of consob regulation n. 11971/99
Financial reporting 94 Consolidated financial statements 94 Consolidated income statement 95 Consolidated statement of comprehensive income 96 Consolidated balance sheet 97 Consolidated statement of changes in equity 98 Consolidated statement of cash flows 99 Notes to the consolidated
Only Walmart 17 18 Five-Year Financial Summary 19 Management's Discussion and Analysis of Financial Condition and Results of Operations 35 Consolidated Statements of Income 36 Consolidated Statements of Comprehensive Income 37 Consolidated Balance Sheets 38 Consolidated Statements of Shareholders' Equity and Redeemable Noncontrolling Interest 39 Consolidated Statements of Cash Flows
20. Non-GAAP Financial Measures 88 21. Glossary 94 2018 Consolidated Financial Statements and Notes 96 Statement of Management’s Responsibility for Financial Reporting 97 Independent Auditor’s Report 98 Consolidated Statements of Financial Position 100 Consolidated Statements of Operations 101 Consolidated Statements of Comprehensive Income 102
Report of Independent Certified Public Accountants 3 Consolidated Financial Statements Consolidated statements of financial position 5 Consolidated statements of activities 6 . and contracts in support of programs, less allowance for doubtful accounts of 594 in 2021 and 517 in 2020 23,337 29,588 Grants and contributions, net 23,226 23,991 .
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