JUNE / JULY 2015 ISSUE 93

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1 Proud Imperial Sponsor: CGMA MA powered by the AICPA CPA and CIMA CP JUNE / JULY 2015 ISSUE 93 THE BOTTOM LINE Send your contributions to: The Editor, The Bottom Line PO BOX 745, Northlands, 2116 E: editor@cimaglobal.com T: F: Design by Trillium Advertising T: E: info1@trillium.co.za TR3034-CIMA-BOTTOMLINE-93-paths.indd 1

2 cimaglobal.com JUNE / JULY / 8 MALCOLM FURBER IS A JOLLY GOOD FELLOW Malcolm Furber FCMA, CGMA, has been awarded a fellowship by the South African Institute of Management (SAIM) allowing him to use the letters FSAIM next to his name. Malcolm Furber Recipients of the fellowship are voted in by present Fellows of SAIM on an annual basis. This prestigious award is reserved for members who have given long and faithful service to the Institute. Join us in congratulating Malcom. MANAGEMENT ACCOUNTING ON AIR Since 2014 CIMA Africa established a series of exciting programmes as part of an initiative with CNBC Africa, which bring management accounting to 46 countries across Africa that are part of the CNBC Africa s footprint. Hosted by one of CNBC Africa s top financial journalists, David Williams, the CIMA management accounting series will present four episodes this year. Episodes five to eight will each address a different management accounting practice and count towards CPD. The studio audience during the recording of an episode of the CIMA management accounting series Episode five aired on 4 May and addressed the importance of the Global Management Accounting Principles which were launched by CIMA in 2014 to serve as a blueprint for business when making decisions. Episode six focused on Management and Budgetary Control and was recorded on 8 June. Episode seven will be recorded on 4 August and will focus on financial strategy. There are limited seats available for ACMAs and FCMAs to be part of the in-studio audience and ask questions. eventssa@cimaglobal.com to book your space. Previous episodes can be viewed on the CNBC Africa Website: The studio panel from episode five consisted of: (Left Right): Brian Schiff, Brian Booth, Duncan McCullun and host David Williams Are you unsure about how to prepare for the 2015 CIMA syllabus? Our exam-focused courses will prepare you for the 2015 syllabus exams and include online computer based mock exams FAT Training is a Johannesburg based CIMA Learning Quality Partner that specialises in strategic level tuition for the objective test and integrated case study exams admin@fattraining.co.za To register go to our website and click on Register Online, or send us an . TR3034-CIMA-BOTTOMLINE-93-paths.indd 2

3 cgma.org JUNE / JULY / 8 YOUNG BUSINESS LEADERS CROWNED ACROSS AFRICA Global Business Challenge (GBC) 2015, the international business competition held by CIMA in partnership with Barclays was held in Ghana, Nigeria, South Africa and Zambia. The following are the teams who will represent Africa at the Global Final in Warsaw Poland in August. GHANA SOUTH AFRICA Team CharterCapital Advisory were crowned the national champions in South Africa. Team Snipers were victorious in their country s leg of the GBC. Team members Abigail Amoakoa Okyere, Bismark Oppong Asumang, Deborah Ofori and Senyo Adu are third year students from the University of Ghana. Team CharterCapital Advisory is made up of students from CharterQuest Training Institute namely Justice Tshabalala, Tshegofatso Makhene, Tshenolo Ramawela and Raymond Miiro. NIGERIA ZAMBIA Team Galactic from the Obafemi Awolowo University in Ile-Ife emerged as the national champions at the Court of Arbitration International Centre in Lagos. The team made up of Agbelese Mayowago, Bamigboye Grace, Bolanle Oduntan and Samuel Anjorin was judged the best of four teams from three universities in the 2nd stage of the competition. Team Athena from Copperbelt University has won the nationals in Zambia held on 12 June at the Taj Pamodzi Hotel in Lusaka. Team Athena wowed the judges and assessors out of an Initial 44 entries from six participating universities. The team members are Chanshi Mwandama, Chileleko Hanjawa, David Mwanza and Malama Ndhlovu. TR3034-CIMA-BOTTOMLINE-93-paths.indd 3

4 cimaglobal.com June / July / 8 SIX TIPS FOR INTEGRATED THINKING 3. Identify non-financial metrics that are significant to the success of the business, gather reliable data, conduct meaningful analysis, and report this information to the board as prominently as the key financial metrics. For instance, a property company may disclose the size of its portfolio and any property market trends that might affect the business in the near future. 4. Relate non-financial metrics to the long-term financial success of the business. Explain why the non-financial factor being measured is important. For instance, training of staff providing motivating career prospects alongside diversity and inclusion policies helps to promote a positive working environment that helps to generate more motivated and engaged employees. Such employees are likely to provide a higher level of customer service, leading to greater customer loyalty, improved reputation, new customers, and increased revenues. 5. Demonstrate to the board linkages between strategy, strategic objectives, performance, risk, and incentives across financial and non-financial information. It s vital that the whole board, not just the executive members, understands how performance relates to the objectives, how risk relates to performance, as well as the extent to which incentive schemes are geared towards promoting those strategic objectives, creating a virtuous circle. Recent reports and debate around integrated thinking all point to the conclusion that: Today s leadership needs integrated thinking and reporting. CIMA head of corporate reporting research, Nick Topazio, shares six tips through which companies can adopt integrated thinking and decision making processes that are fundamental to the creation of an integrated report: 1. Understand what value means in the context of the organisation and how its business model creates value. A clear description of the business model is essential. Start by identifying key inputs, activities, outputs, and outcomes. Which financial and non-financial resources and relationships are material to the long-term success of the business in terms of value creation? Think broadly, not just about relationships within your supply chain, but about anything you need to maximise customer experience. For example, a mobile app provider may have a direct relationship with the host platform, but it is also dependent upon the functioning of the wider mobile telephony infrastructure. This knowledge helps companies understand the potential impact any change in the future availability of these key inputs might have on their activities. 2. Develop a clear explanation of the positive and negative impact of trends shaping the company s current and future operating environment across the different types of capital defined by the International Integrated Reporting Council: financial, manufactured, social and relationship, intellectual, natural, and human. 6. Be holistic in terms of what you report, and focus on the interconnectivity of different elements. Integrated thinking involves gathering and reporting this information to the board in the first instance. Good internal reporting drives better decision-making, which allows you to report externally in a more integrated way. The external report should provide highlights of what the board has spent its time discussing. HARVEST INSTITUTE OF COMMERCE BECOMES GLOBAL LEARNING PARTNER Based in Boksburg, Harvest is the most recent institute to become a CIMA accredited tuition provider at the level of a CIMA Global Learning Partner in Gauteng. Mr Martin Mudau, the Managing Director of Harvest Institute will head the provision of CIMA tuition support through distance learning and online studies providing students with great flexibility. For further information please contact them direct on +27 (0) or martin@harvestinstitute.co.za TR3034-CIMA-BOTTOMLINE-93-paths.indd 4

5 cgma.org June / July / 8 EVENTS ROUND UP THE DESIGNATION CGMA TAKES CENTRE STAGE AT ACOA 2015 The biggest congregation of accountants in Africa, the Africa Congress of Accountants (ACOA) 2015 happened in Mauritius in May. Held under the theme: Africa Rising: Partnering for Results, the conference presented a great opportunity to prove that Africa is synonymous with success and growth and that Africans share a common vision and ambition. The CGMA stand CGMAs attending ACOA Following the ACOA 2015 deliberations; delegates came together for a group photo Devika Mohotti The Chartered Global Management Accountant, CGMA was a proud Gold Sponsor of the conference and enjoyed the opportunity to have prominent CGMAs representing the designation. Anthony Boateng FCMA, CGMA, who is the immediate Past Chairman of the Africa Regional Board (ARB) spoke on developing sustainable national institutions and human capacity to deliver results in public and private sectors. Devika Mohotti FCMA, CGMA, Deputy Chairman of the Professional Accountancy Organisation Development Committee, chaired the session on accountants as innovation drivers. Victor Nyasulu FCMA, CGMA, Chairman of the ARB, addressed delegates on Public Finance Management and Foreign Direct Investment in Africa. ACOA 2015 was officially closed by Olivia Kirtley CPA, CGMA who is the first female President of IFAC. In her closing statement she congratulated organisers MIPA and PAFA on a job well done and announced that ACOA 2017 will be held in Uganda. Above are some of our favourite moments in pictures and below, our favourite quotes: We have political freedom. Now it s Africa s time for economic freedom - Vickson Ncube In an ideal situation, Foreign Direct Investment can and has had a positive impact on the development agenda of African countries e.g. Mauritius and Cameroon. The positive effects are usually off-shoots of a stable accountable and transparent PFM system - Victor Nyasulu Technology is disruptive in a positive way - Devika Mohotti Illicit money must be prevented from leaving in the first place accountants must stop it. Recovery is too slow - Afsar Ebrahim Our decisions must be contextualised in African research and African data - Vickson Ncube Accountants are critical to successful investment in infrastructure in Africa - Hapenga Kabeta Anthony Boateng FCMA, CGMA on day two of ACOA TR3034-CIMA-BOTTOMLINE-93-paths.indd 5 Accountants must be trusted advisors and intermediaries between citizens and organisations - Anthony Boateng

6 cimaglobal.com JUNE / JULY / 8 Admission Opportunity for CIMA Members In servicing the Memorandum of Agreement between ANAN and CIMA, ANAN hereby announces admission opportunity for CIMA members. How Benefits Registration With pass in just 5 papers (PEA 4 & 6 and PEB 2, 5 & 6) CIMA members become eligible for admission as ANAN members. Membership designation, CNA-Certified National Accountant Recognition in the National Scheme of Service Recognition by Financial Reporting Council (FRC) of Nigeria Opportunity to Practice in Nigeria Access to MCPD, e-mcpd Access to the Certified National Accountant Journal and Journal of Accounting which update you on current happenings in the profession. USD 1,105 covering Prospectus, Tuition, Study Packs and Examination. Register online at or for further enquiries, info@anan.org.ng. Join ANAN and Elevate your Career. TR3034 TR3034-CIMA-BOTTOMLINE-93-paths.indd /07/13 8:13 AM

7 cgma.org JUNE / JULY / 8 CIMA AT THE PRISMS CIMA was recognised for its long standing association with the Prism awards at this year s event themed a celebration of Africa, its cultures and of collaboration across the continent which was held at the Maslow Hotel in Johannesburg recently. This year the CIMA sponsored category Financial services and investor relations - saw an increase in the number of entries to 15. Atmosphere Communications in association with KingJames won this category for their Sanlam One Rand Man campaign. From Left to Right: Anika Theron and Laura Volmink from Atmosphere Communications and Tumi Sefemo representing CIMA WESTERN CAPE GRADUATION STUDENT COCKTAIL EVENT Graduates celebrate after receiving their certificates The Western Cape Branch hosted its graduation on 21 April at the Atlantice Imbizo. During this event Branch Chairman, Natalie Ansley conferred certificates on students for Certificate in Business Accounting, Diploma in Management Accounting and Advanced Diploma in Management Accounting qualifications. The graduation ceremony celebrates the hard work and achievement of students. Students attending the cocktail were treated to a presentation by sponsor, FAT Training The Gauteng Branch hosted students at a cocktail evening sponsored by FAT Training on 28 May at the Country Club in Johannesburg. This event followed the May case study exam window and allowed students to de-stress, unwind and network with fellow students who sat their exams in that same window. MALAWI BRANCH ANNUAL GENERAL MEETING HELD Malawi Branch Chairman, Tiya Somba Banda, presented her branch annual report for 2014 to an audience of members and students during the annual general meeting held on 17 April at the Sunbird Capital Hotel in Malawi. The newly elected Malawi Branch Committee members CIMA Finance and Operations Manager, Brigitte Holtz FCMA, CGMA presented a regional report on CIMA. The Branch also elected new members of the Branch Committee as seen in the picture. TR3034-CIMA-BOTTOMLINE-93-paths.indd /07/13 8:13 AM

8 cgma.org JUNE / JULY / 8 MAURITIUS BRANCH ANNUAL GENERAL MEETING A SUCCESS The Mauritius Branch Annual General Meeting was held on 12 May at the Voilà Bagatelle, Mall of Mauritius to coincide with Mauritius hosting the Africa Congress of Accountants during which the designation CGMA was a Gold Sponsor. The keynote speaker was Soomilduth Bholah FCMA, CGMA who is the Minister of Business Enterprise and Cooperatives in Mauritius.The meeting was also addressed by Africa Regional Board Chairman, Victor Nyasulu FCMA, CGMA and Africa Regional Director, Samantha Louis. Branch Chairman Bernard Prefumo FCMA, CGMA reviewed branch activities for 2014, the performance of the branch and proposed budget and activities for In this picture (Left - Right): Murveen Ragobur, Victor Nyasulu, Samantha Louis, Soomilduth Bholah, Bernard Prefumo and Sewraj (Rishi) Parthynaikoo IN MEMORIAM: STEVE KEARSEY STUDENT EXAM TECHNIQUE SESSIONS Sonia Weston, CIMA Learning and Development Business Partner, has continued her series of open forums for students, this time in Botswana, Mauritius and Zimbabwe. It is with sadness that we announce the passing of a long standing member of CIMA, Steve Kearsey. Steve was an active member of the KwaZulu Natal Branch, served on the Divisional council and was President of the SA Council and Chairman from 2000 to 2002 May his soul rest in peace. During these sessions held on 16 April, 16 May and 30 May respectively Sonia took the students through the changes in the 2015 Professional Syllabus and shared insights on how students can maximise their credits in the transition from the 2010 to 2015 syllabus. The exam technique sessions are a way of helping students across the region with a smooth transition into the 2015 syllabus and the new computer based assessments. It will assist students with optimising their plans for CIMA studies. Students attending the session with Sonia Weston from CIMA DATES TO DIARISE EVENT DATE Venue Networking Event 16 July Marimba Restaurant workshop, Cape Town Mastering the art of business and personal communication 26 July Mutangushi International Conference Centre, Lusaka Toastmasters 27 July FNB Conference Centre, Sandown CIMA Management Accounting Series, Episode 7 recording 4 August CNBC Africa, fourth floor, Sandown Mews Tax Indaba 7-11 September Sandton Convention Centre TR3034 TR3034-CIMA-BOTTOMLINE-93-paths.indd /07/13 8:13 AM