Cima Ireland network news

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CIMA IRELAND NETWORK NEWS SHEILA LEWIS Message from the chair

CIMA AND AICPA New association proposed

IRISH DEFENCE FORCES Enlist CIMA

BREXIT POTENTIAL IMPLICATIONS

WINTER 2015

Network NEWS | AUTUMN 2014

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CONTENTS Introduction from CIMA Ireland Chair, Sheila Lewis

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Sheila Lewis profile

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Cork woman elected president of CIMA

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CIMA Ireland appointment

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UK members support EU membership

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AICPA and CIMA proposal to create new accounting association

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Accounting school opening

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Irish Defence forces enlist CIMA

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Internship programme

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CIMA launches updated Certificate in Business Accounting

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Case study - Commandant Francis Kehoe, Irish Defence Forces

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Self-employment – the CIMA route, by Ray Baxter

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Implications on budgeting for 2016 and beyond of a potential Brexit

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Area news

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Global Business Challenge Ireland final 2015

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CIMA Undergraduate Awards

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Save the date – 2016 CIMA Ireland annual conference and dinner

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Benevolent Fund

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Network NEWS | WINTER 2015

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WELCOME A message from CIMA Ireland Chair Sheila Lewis Welcome to the winter issue of Network News which is my first issue as chair of CIMA Ireland. I would like to start by paying tribute to my predecessor, former chair Frank Nolan, who handed over to me a very vibrant and strong institute at the AMM last June.

The strength of the institute represents the importance of consistent and good stewardship. This in turn is aligned to a long term forward looking strategic focus, underpinned by a committed membership. In this regard I am happy to report significant growth in recent years. We now have in excess of 8,300 members and students here in Ireland representing financial and strategic decision makers in over 2,500 companies. Our strategy has ensured a strong and viable organisation that is fit for purpose and best positioned to represent our members’ interests at local and global level, both now and into the future.

At global level our joint venture with the

American Institute of CPAs which established the Chartered Global Management Accountant (CGMA) designation continues to evolve.

As a professional body in Ireland CIMA is leading the way. As an institute we open doors to assist career development and are to the fore in providing exam support, CPD, networking opportunities and thought leadership. We work closely both with employers and educators to ensure full support at every level. Whether it is early stage entry level or the culmination of several years of hard work leading to the professional CIMA qualification, CIMA provides a whole of life approach to our members and students.

At global level our joint venture with the American Institute of CPAs which established the Chartered Global Management Accountant (CGMA) designation continues to evolve. Against the backdrop of increasing complexity and globalisation of business, CIMA and the AICPA are proposing to join forces to create a new accounting association, uniting both the management and public accounting profession and elevating the unique roles of CGMAs. This is to be welcomed. I hope you will support the next step in our successful evolution which would see our scale escalate to create the world’s most influential and respected body of 600,000 current and next-generation professionals, of which you would be a member.

As one door closes another opens and I am delighted to advise you of the appointment of Roger Acton to head up CIMA Ireland. Roger, who replaces former CIMA Ireland Director Denis McCarthy, brings enormous experience to the role both from within the accounting profession and as a highly regarded and experienced leader in the professional business association sector. I would like to express the board’s appreciation to Denis for his huge commitment and contribution to CIMA Ireland over the last seven years and to wish him well in the next chapter of his career.

At the outset I said our CIMA strategy has been very successful for us as an institute and for us as members. Great work is carried out by our executive and staff, our board, our area boards and working groups, who all do wonderful work. I would like therefore to thank all for their tremendous support and engagement. Equally I wish to encourage those of you who have yet to get involved to get in touch whether it’s through your local area network or the CIMA membership team cima.ireland@cimaglobal.com to become actively involved in this very vibrant organisation. It requires all of us working together to continue to make this a great CIMA team.

Finally I would like to wish you and your families a joyous and peaceful Christmas and a promising and bright 2016.

Sheila Lewis Chair, CIMA Ireland

In terms of leadership we are very proud that 30% of CIMA Ireland members are now in head of function and other senior management roles, including CEOs and MDs in the indigenous, public and FDI sectors.

CIMA members are in fact represented across the entire FDI sector in line with the global nature, mobility and business focus of the qualification.

In addition over 20% of our membership work outside of the finance function further reflecting CIMA’s emphasis on business management and business strategy.

With the emphasis on leadership to the fore it is fitting that our conference on 7 May 2016 in Cork next year is entitled ‘The future of finance – leadership challenges in a digital age’. Our lineup of speakers includes some remarkable business leaders from the CIMA gene pool such as Aongus Hegarty CGMA, President of Dell EMEA; Deirdre O’Connor CGMA, MD of Global Asset Management, and former MD of Goldman Sachs and Matt English CGMA, CEO, Special Olympics Ireland. We have also been fortunate in securing fellow Corkonian, Myriam Madden CGMA, CIMA President and whom I look forward to welcoming along with our panel of guest speakers.

Network NEWS | WINTER 2015

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INTRODUCING SHEILA LEWIS, CHAIR CIMA IRELAND Sheila Lewis FCMA CGMA, Financial Controller for Glennon Bros Cork Ltd, was elected Chair of CIMA at the AMM in Belfast earlier this year. From Kilworth, Fermoy, Co. Cork, she holds a Master’s in Business from Cork Institute of Technology, is a fellow of Accounting Technicians Ireland and received her CIMA fellowship in 2010.

Lewis served as secretary, treasurer, vice chair and chair of the Cork and Kerry Branch of CIMA (Southern area). She chaired the Students and Education Special Interest Group on the CIMA Ireland board from 2011 to 2012 and chaired the Students and Members Special Interest Group on the CIMA Ireland board from 2012 to 2014. She was elected deputy chair for CIMA Ireland in June 2014 and is also a membership assessor with the institute since 2010.

Prior to joining Glennon Bros, Lewis worked in the retail, technology, manufacturing and construction industries gaining a broad range of experience across many areas including business strategy, finance, financial management, internal audit, management accounting, mergers and acquisitions, procurement, project management and systems implementation.

In her spare time she volunteers with the Irish Red Cross from whom she received her 25 year active service award earlier this year. Sheila is also secretary for her local Kilworth and Araglen parish pastoral council.

Glennon Bros employs over 390 people and is one of the leading timber processors in Ireland and the UK with plants in Longford, Fermoy, Edinburgh, Troon and Arklow. Glennon Bros were the winners of the 2010 Ernst & Young Entrepreneur of the Year award – industry category, and winner of a prestigious Ruban d’Honneur in the 2013 European Business Awards.

Sheila Lewis FCMA CGMA, Chair CIMA Ireland pictured after her election at the AMM with deputy Chair, Sean Shine FCMA CGMA, Senior Managing Director, Health and Public Service, Europe, Africa and Latin America, Accenture.

CORK WOMAN ELECTED PRESIDENT OF CIMA CIMA elected Myriam Madden FCMA, CGMA as president for 2015/2016 following the AGM on 6 June. Myriam was born and educated in Cork and is a graduate of UCC. She is an experienced director of finance, specialising in finance and operational transformation across a broad range of organisations in the public sector, financial services and internationally in global blue-chip companies.

She presides over an important period for CIMA as the organisation continues to promote management accounting in business. CIMA will be focusing on building strong links with business and other stakeholders and creating value in major cities around the world.

It will also continue to build on its joint venture with the AICPA to establish the CGMA designation as the global quality standard for the profession.

Myriam has held global governance roles at CIMA since 2007, which include roles as deputy and vice president, chair of the global members’ services committee and a board member of the audit and risk committee. She also served on the board of the AICPA. She now becomes CIMA’s 82nd president, a voluntary role responsible for

Network NEWS | WINTER 2015

chairing the institute’s governance arrangements and advocating for CIMA and management accounting.

Professionally, Myriam has a strong background in finance and business with extensive experience in governance, business strategy, mergers, acquisitions and operational transformation. Organisations where she has led change programmes and finance functions include HBOS, Hewlett Packard, Agilent, Scottish Arts Council, NHS and Historic Scotland. She is a graduate of University College Cork with an honours degree in commerce and business.

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CIMA appointment Mr. Roger Acton, BA, MSc, is to head up CIMA in Ireland, the professional body representing 8,000 plus members and students.

Mr. Acton is a former regional director Europe and Americas for ACCA and led ACCA’s growth and development strategy through 15 offices in the UK, Europe and the Americas. Prior to that he also held a number of senior positions including head of ACCA Ireland and Central and Eastern Europe (CEE).

Mr. Acton, with a background in the professional association and non-profit sectors, is a former chief executive of the Disability Federation of Ireland (DFI) and a co-founder and former chair of BoardmatchIreland.ie, the National Corporate Governance Charity in Ireland. He was also a founding member of the Wheel, the representative body for charities, community and voluntary organisations.

CIMA is the world’s leading and largest professional body of management accountants, with over 227,000 members and students operating in 179 countries.

UK MANAGEMENT ACCOUNTANTS WANT TO STAY IN THE EU TO PROTECT BRITISH BUSINESS UK management accountants want the UK to remain in the EU, according to a survey of CIMA members. The majority (63%) said they want to stay in the EU even if David Cameron fails to renegotiate its relationship with Europe.

The poll, which covered 1,100 UK professionals working in finance across all industry sectors and sizes of organisation, found that over three-quarters (76%) want the UK to maintain EU membership and 80% stated they believe EU membership is good for British business.

Only 7% thought that leaving the EU would have a positive impact on their own business.

Tony Manwaring, CIMA’s executive director, external affairs, said: ‘The role of management accountants is to assess all relevant information to decide what will best ensure the success of business now and in the future. On this basis, they have said that the UK’s membership of the EU is good for the UK. The majority of CIMA members want the UK to remain within the European Union at all costs.’

The survey showed that demand for business-specific reforms was quite low, with only 5% wanting changes to corporate regulations, 12% wanting the UK to push for tax harmonisation, and 12% wanting changes to employment regulations. Support for adopting the single currency was extremely low with only 4% of survey respondents indicating they would like the UK to join.

The majority of CIMA members want the UK to remain within the European Union at all costs.

Positive sentiment towards the EU was consistent across all sizes of organisation and was high even with relatively low levels of interaction with other EU countries. A third (33%) reported a significant proportion (over 25%) of business which involved other EU states and the majority (54%) has not seen any increase in business with other EU states in recent years. Only a small proportion (14%) said their organisations receive some form of funding from the EU.

Network NEWS | WINTER 2015

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CIMA AND AICPA ARE PROPOSING TO JOIN FORCES TO CREATE A NEW ACCOUNTING ASSOCIATION Remaining competitive in a changing world is harder than ever.

Business won’t become less global and the world won’t become less complex. In fact, we are living in a VUCA world – a world that is volatile, uncertain, complex and ambiguous. That is why we must evolve to continue advancing our profession – expanding your opportunities, cultivating the talent of tomorrow and keeping your designations at the forefront of market demand.

delivery of resources relevant to you, speak for the public interest with an even stronger voice, and help people and businesses to succeed.

Do tune in for more updates over the coming months.

CIMA and AICPA are proposing to join forces to create a new accounting association, uniting both the management and public accounting profession and elevating the unique roles of CGMAs. This will be an evolution from our successful joint venture that began in 2011. Today we have 150,000 CGMAs around the world and jointly, we have developed the CGMA Competency Framework and a pioneering set of Global Management Accounting Principles.

By combining the strengths of our organisations, we are confident that we will create the world’s most influential and respected body of 600,000 current and next-generation professionals, of which you would be a member. We will accelerate the development and

ACCOUNTANCY SCHOOL OPENING Sheila Lewis, Chair CIMA Ireland was guest of honour at the official opening of AccountancySchool.ie pictured with left Dave O’Donoghue, Managing Director of AccountancySchool.ie and Martin Nolan, Head of Department of Accountancy and Professional Studies, ITT Dublin.

Network NEWS | WINTER 2015

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IRISH DEFENCE FORCES ENLIST CIMA The Irish Defence Forces is partnering with CIMA under a programme which will equip Defence Forces personnel with universal financial management competencies. This is the first time that the Defence Forces have appointed an accounting training partner. It followed a competitive process which entailed a study of the offerings of all accounting institutes. Eighteen positions have been offered to the Defence Forces in the first year.

CIMA is providing a distance learning Certificate in Business Accounting programme (Cert CBA) which focusses on the performance needs of enterprises. The development of a generic financial management capability within the Defence Forces will support internal and external data analysis relating to financial management and expenditure to assist management decision making.

Skills acquired will include preparing financial reports, forecasting performance and data analysis as well as a solid grounding in the fundamentals of basic accounting, management accounting and business principles. The Certificate in Business Accounting programme also provides a stepping stone to the CIMA professional qualification which takes approximately three years to complete and provides members with the CGMA designation.

The distance learning approach ensures that Defence Force personnel who are deployed overseas are eligible to participate.

Chief of Staff of the Defence Forces Vice Admiral Mark Mellett (DSM) has welcomed the partnership with CIMA. He stated, ‘This partnership with CIMA is a very important development for the Defence Forces.

Military operations cannot succeed without the appropriate logistical and financial planning and support. The qualifications gained by our personnel through this programme will undoubtedly enhance our financial management systems and give added value for money as well as supporting the life-long learning culture of the Defence Forces’.

At the announcement of the partnership between the Irish Defence Forces and CIMA Ireland are Lt Colonel Gerard Buckley (left) with Chief of Staff of the Defence Forces Vice Admiral Mark Mellett (DSM).

Pictured announcing the partnership between the Irish Defence Forces are l-r Comdt Eugene Cooke; Lt Colonel Gerard Buckley; Mrs. Aideen Day, Management Accountant within the Defence Forces; Denis McCarthy, Former Regional Director, CIMA Ireland, Chief of Staff of the Defence Forces; Vice Admiral Mark Mellett (DSM) and Comdt Francis Kehoe.

Network NEWS | WINTER 2015

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INTERNSHIP PROGRAMME UPDATE The CIMA Ireland internship programmes provide CIMA affiliated employers with access to a pipeline of talented students from Ireland’s leading business schools. For details of the internship programme in your area please visit www.cimaglobal.com/internships.

These internship programmes have been established in close collaboration with business schools across the island of Ireland.

Under the internship programmes, business schools work with employers to select students for placement in line with the specific recruitment requirements of the individual employer, to ensure that placements meet the specific business needs of the organisation.

Participating business schools Cork Institute of Technology, Dublin Institute of Technology, Dublin City University, Limerick Institute of Technology, NUI Galway, University College Cork, University of Limerick, University of Ulster, Waterford Institute of Technology, Queen’s University Belfast and IT Sligo.

CIMA LAUNCHES UPDATED CERTIFICATE IN BUSINESS ACCOUNTING CIMA has launched an updated CIMA Certificate in Business Accounting (Cert BA). Assessments under the updated syllabus will commence in January 2017.

The update consolidates the five subjects of the existing syllabus into four. The former standalone Business Mathematics subject is now integrated across other subjects, allowing for contextual practical application of maths.

The full syllabus content has been reviewed and refreshed, following thorough’ global industry and educational research, to ensure it remains up-to-date and relevant.

Noel Tagoe, Executive Director of CIMA Education, said: ‘The Certificate in Business Accounting is designed to elevate people and businesses to success by developing skills and unlocking talent. It’s a standalone qualification designed to give anyone – not just those in a finance role – a solid grasp of the fundamentals of business and finance. By equipping people with the knowledge and skills that employers need, we can help them further their careers.

‘The Cert BA update was based on extensive research and consultation with employers and educators worldwide, ensuring

Network NEWS | WINTER 2015

that the syllabus continues to reflect the emerging issues faced by businesses and responds to their need for competent, confident and skilled professionals.’

The Certificate in Business Accounting is designed to elevate people and businesses to success by developing skills and unlocking talent.

Earlier this year, CIMA introduced an updated syllabus and computerised assessments for the CIMA Professional Qualification, based on rigorous global research and the newly-created Chartered Global Management Accountant (CGMA) Competency Framework.

While the updated Cert BA is a standalone qualification, it also continues to serve as a prerequisite to the Professional Qualification. The update now aligns the Cert BA more strongly with the Professional Qualification by embedding the CGMA Competency Framework and integrating the ‘three learning pillars’ structure.

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NETWORK NEWS CASE STUDY The Irish Defence Forces is partnering with CIMA under a programme to equip its personnel with universal financial management competencies. This is the first time that the Irish Defence Forces have appointed an accounting training partner.

Network News talks to Commandant Francis Kehoe, Finance Manager with the Irish Defence Forces, who completed the MSc in Strategic Management Accounting at the UCD Michael Smurfit Graduate Business School. An NUIG graduate with an MBS in Procurement Commandant Kehoe, as a member of the Irish Defence Forces, has served both in Ireland and on tours of duty overseas in Liberia and Kosovo.

What does your role within the Defence Forces involve?

My role takes account of many of the traditional management accounting disciplines such as budgeting, forecasting and expenditure appraisals. My current focus is on a review of IT expenditure for the Army, Navy and Air Corps which includes satellite communications for overseas operations.

The CIMA qualification has been of significant value when coaching, mentoring and formal presentations to both finance and non finance personnel.

I have also been involved in combining my procurement expertise with investment appraisal techniques. This included a tender for external service deliveries that led to a saving of 17% while maintaining a high level of service This contract led to a combined saving of €1.5 million over a two year period.

Why the MSc in Strategic Management Accounting?

The collaboration with CIMA and UCD Smurfit School has created an excellent partnership. The UCD Smurfit School’s high standing in management both in Ireland and internationally was a key factor. Also, the emphasis on case studies and the programme’s hands on delivery approach encouraged me to apply.

How did you find studying for the MSc? Fortunately, I was able to combine my efforts with work through the completion of an evidence based research project. The project was on the implementation of performance measurement systems for large organisations and enabled me to transfer learning across a range of modules and present new ways of achieving efficiencies.

What advice would give to anyone thinking of doing the MSc? In addition to the qualification, anybody considering the MSc will benefit from open engagement with their fellow student and lecturers. There is a concentration of diverse expertise and backgrounds that aligned to the MSc provides for a unique learning experience and grounding that will enhance both your career and the ability to contribute to whichever enterprise you are involved in.

How has the CIMA qualification contributed to your role?

Using techniques that were developed through my CIMA studies, I contributed to the effective costing of the daily Defence Forces rate for feeding personnel. The rate includes all of the ingredients that Defence Force specialist chefs use to feed one person within a 24 hour period.

This rate has withstood inflationary price movements and is maintained at €4.20 per day. This project won an award ‘Excellence in Public Procurement’ at the National Procurement Awards 2014.

I also played a role in the development of the Defence Forces Nutritional Ration Pack. The lessons I learned from this project was that there is a requirement to communicate the benefits of change both internally and externally to a wide range of stakeholders.

Furthermore, the CIMA qualification has been of significant value when coaching, mentoring and formal presentations to both finance and non finance personnel.

How has the Irish Defence Forces supported you to fulfil your CPD requirements?

Recognising the value that Management Accountants bring to organisations the Defence Forces has formed a partnership with CIMA Ireland. The partnership values and recognises our internal training which can now be complimented by association with CIMA. One of the major benefits that I have experienced from CPD is the opportunity to improve and shape my critical thinking through exposure to interesting people.

How has CGMA designation contribute to your career?

The CGMA designation brings a greater relevance and international understanding of the evolving challenges confronting Management Accountants on an international basis.

Network NEWS | WINTER 2015

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SELF-EMPLOYMENT - THE CIMA ROUTE

by Ray Baxter FCMA

Special services Your CIMA training and experience can be used for novel activities, in the Dublin area there is a member who specialises in preparing businesses for sale and another who sends a team of VAT experts into large companies to reclaim their European VAT. Yet another is involved in business cost saving services.

Running your own business can be the biggest thrill you will achieve in your working life, or the most stressful and demoralising experience you can imagine. On some days it is both!

The next stage of planning, yes you’ve guessed it, is a marketing plan.

How are you going to get customers? This is too big a subject to cover here unfortunately.

Given the stresses involved in running your own business, it helps if you are passionate about what you plan to do. It is also much easier to engage with and impress potential customers if you are passionate about what you can do for them.

• Professional indemnity insurance (to protect you) • Terms of engagement (formal agreement with clients) • Continuity agreement (an alternate to look after clients if anything happens to you) • Complaints handling procedure • Anti-money laundering knowledge • A current tailored CV to show your experience • Members in Practice annual fee (£130)

There are many reasons why CIMA members decide to become selfemployed. Sometimes it is triggered by a major change at work such as redundancy or change in location. Some like the independence it gives and the means of working on your own terms after a parenting break.

Whatever the reason, self-employment can be hugely rewarding.

It is important to prepare a plan – and you are well trained to do that!

First decide what type of work you would like to do. The options for CIMA members are: General practice You can be better at this than typical high street accountants because you can also offer management accounting and strategy development to small businesses. You will however have to learn new skills like tax and company law. You will need to employ people early on to do the bookkeeping and your customers will be small businesses.

Management accounting There are a few of us who stick to what they know and offer management accounting to a small number of clients. Basically you are doing what you do now as an employed management accountant but for three or four businesses instead of just one. You will not have staff and your customers will be medium sized businesses who are happy to use their existing external accountant for annual compliance work.

Interim management This is also a one person business and you will take on assignments lasting from six to 18 months as a temporary accountant. You could be covering for an existing accounting going on pregnancy or sick leave or perhaps a special project like a factory closure or setting up new systems.

Consultancy If you have a special knowledge or experience, it can be offered to clients on a self-employed basis. General consultancy to large private or public organisations tends to be sewn up by the big firms. There are however lots of niche opportunities.

Network NEWS | WINTER 2015

If your plans look favourable then go for it. CIMA is regulated by external bodies who require them to monitor practising members.

You are required to register as a Member in Practice before delivering accountancy related work. Before registering as a MIP you must have the following in place:

There is a 46 page self-employment handout available which gives more detail. Request this from Jean Cuthbertson, jean.cuthbertson@ cimaglobal.com) and she will send you a digital copy.

Ray Baxter is a past chair of CIMA Northern area, and of the London based MiP panel. He was a member of CCAB-Ireland and currently represents CIMA on the small practice forum of the Brussels based Federation of European Accountants.

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IMPLICATIONS ON BUDGETING FOR 2016 AND BEYOND OF A POTENTIAL BREXIT As we move towards year end, many companies are beginning to enter the budgeting process for 2016 and beyond. Whist this budgeting process needs to take into account current economic, currency and interest rate forecasts, there is always the risk of a major event, which could significantly impact these forecasts. In this context, Brexit, the UK exit from the EU, is a risk that even if the event itself doesn’t occur, may result in significant volatility in the run up to the referendum.

By way of background, as part of their recent election campaign, the Conservative Party in the UK indicated that it would enter negotiations with the EU to deal with issues of concern to the UK and to subsequently hold a referendum on EU membership before the end of 2017. If these negotiations conclude either at the December or an early spring summit of EU leaders, the focus will switch to when the UK will hold the referendum. Common thinking is that David Cameron would prefer a referendum in 2016, so as not to overshadow the remainder of his term in office, hence the most likely date for a vote is in the second half of 2016. This timeframe could lead to significant moves in sterling for the majority of 2016 during the negotiation, in the lead up to the referendum, and particularly in the event of a vote to leave the EU. A recent YouGov poll found both sides are tied at 40% support, while recent research from Morgan Stanley places the probability of a UK exit at 35%. However, as the Irish and Scottish governments can attest, referenda are unpredictable and sentiment can change quickly, sometimes driven by issues outside the terms of the campaign. In the event of a majority vote to leave the EU, expectations are these exit negotiations would take place over two years. It should be noted however, the UK will not have a veto over the final terms of the exit.

trade deals in certain sectors. They believe that the UK will be a far more attractive partner for countries to agree trade agreements, due to its status as the world’s fifth largest economy. They also believe the UK will be nimbler when negotiating these trade deals compared with EU’s negotiators as they will not be trying to please multiple interest groups from multiple countries during negotiations, rather they will be focused on delivering the UK’s key strategic aims. However, it should be noted that Switzerland also has to abide by EU rules and regulations in the sectors covered by its trade deals with the EU. Regardless of the model chosen, it’s fair to say there will be an impact on Irish businesses on multiple fronts, examples of which are; 1.

A recent ESRI study on the topic, believes the reduction in bilateral trade between Ireland and the UK could be 20% or more, this is an average figure and may be felt differently by different sectors of the economy. While sectors such as chemicals and pharmaceuticals account for a large share on exports to the UK, certain sectors such as agriculture and food and beverages would be harder hit as they are more dependent on exports to the UK. There could be an even larger reduction in trade between Ireland and the UK due to the potential introduction of trade barriers. Second round effects will also occur due to a natural drop in demand for Irish products in the UK, due to a decrease in the size of the economy. Studies indicate the impact on the UK economy of a Brexit could be a decline of between 3-10% of GDP, although it could take many years for the full implications to be felt.

2.

In the event that polls in the run up to the referendum show that the result was favouring a Brexit, expectations are that EUR/ GBP could give up some of the gains it has made in recent years, probably moving back towards the 80p level. A similar move towards low $1.40 could also be expected against the USD. These moves would have obvious implications for the competitiveness of companies exporting into the UK. Possibly more impacted, however, would be those competing domestically against UK imports, as these imports would become significantly cheaper. It’s key to note these exchange rates could occur while the UK is still engaged in exit negotiations, so trade barriers would not be in place, and UK imports would still have free access to Irish markets.

3.

There could also be interest rate implications. S&P has already warned that it may cut the UK’s credit rating by as much as two notches in the event of a Brexit. Foreign investors may also be less likely to hold sterling assets in the run up to a referendum if the result is in doubt. This could result in a steepening of the interest rate curve with longer term rates moving higher quicker than shorter term rates. This would have implications for companies with sterling debt due to roll or refinance during 2016.

Ireland has very close trade and economic links with the UK and so would be greatly impacted by a Brexit. The UK is a particularly important market for Irish indigenous exporting firms, with 17% of all Irish exports going to the UK. Those trading with the UK, at a minimum would face increased administrative and regulatory costs in the event of a Brexit.

There will also be significant issues brought about by potential changes to the common land border with Northern Ireland, the common travel area and the long standing associated automatic right for Irish people to work in the UK, among multiple other issues.

AIB’s Treasury Economic Research Unit recently published a report ‘Brexit – Poses many risks for the UK and Ireland’ which discussed the many risks for Ireland of a Brexit, this report can be downloaded from www.fxcentre.com. In the report, they state the severity of the impact on Ireland, depends on the ultimate relationship which the UK ends up having with the rest of the EU. There are many current trade relationship models with the EU, which could form the basis for a future UK relationship. One of the most discussed is the Norwegian model. In a recent Guardian newspaper article Espen Eide, the former Norwegian foreign minister, wrote: ‘Those campaigning for Britain to leave the EU and choose the Norwegian way can hence correctly claim that a country can retain access to the single market from outside the EU. What is normally not said, however, is that this also means retaining all the EU’s product standards, financial regulations, employment regulations, and substantial contributions to the EU budget. A Britain choosing this track would, in other words, keep paying, it would be ‘run by Brussels’, and it would remain committed to the four freedoms, including free movement.’. Other commentators supporting a Brexit, believe it should go the route of Switzerland who have negotiated a series of bi-lateral

While companies should continue to budget for 2016 and beyond as normal, it’s useful to consider these type of tail end risks which are deemed to be of a low probability but high impact in nature. These are risks which should be closely monitored and potentially insured away by use of hedging products. As noted above, however, its likely that even the potential of a Brexit, may be enough to cause significant volatility in 2016.

John Sheils is a Senior Relationship Manager in AIB’s Customer Treasury Services and can be contacted on 016417689 or john.f.sheils@aib.ie

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AREA NEWS Southern area The Southern Area Board (SAB) under chair, Adrian Cronin, have a very active member and student engagement programme.

Highlights include a presentation to potential new recruits at UCC’s careers fair at which Eoin Buckley talked to students about what a management accountant does and what becoming one means for their professional lives.

Separately EPS Group facilitated a site visit to the Waste Water Treatment Plant at Kinsale to include an educational presentation.

SAB Chair, Adrian Cronin, who is Systems and Finance Lead, Major Projects, Ervia hosted the visit.

A presentation on pensions planning by ABM attracted a strong turnout in September.

Hot off the press Brendan Twohig of MK Brazil provided a post budget day debrief on 14 October, immediately following the budget, for members. This was followed in November with the fourth annual economic briefing hosted jointly by CIMA and the IACT. Simon Barry, Chief Economist Ulster Bank gave a very insightful presentation about the economic outlook for Ireland in 2016.

Local members at the Waste Water Treatment Plant

The Southern area also held a CPD event in Waterford’s Granville Hotel ‘High performance – lessons from the best’. It was presented

by Brian McNiece an expert on high performance culture and strategy who has led assignments with clients in a diverse range of industry sectors, including professional services, enterprise development, financial services and technology. In addition to his high performance consultancy work, Brian has developed a management training programme, Kotinos Critical Skills, in collaboration with world-renowned rugby referee Alain Rolland.

Pictured at the CPD event High Performance – lessons from the best, are Pat White, Kieran McKeown and Eric Rochford.

Northern area The Northern area annual dinner took place in the Europa Hotel, Belfast on the 13 June.

Pictured at the dinner are Shane Murphy; Nigel and Glynis Patterson; Catherine and Frank Nolan.

Also pictured at the dinner are David Meade; Sheila Lewis; Andrew Miskin and Richard Stack.

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Western area

For our members and students, the Western area hosted one of its most popular events, the annual Dr. Aidan Kane post budget review, entitled ‘The Irish economy now: recovery and risks’.

Western area annual dinner The Western area board of CIMA hosted its annual dinner at Glenlo Abbey, Galway on Saturday 19 September and included a Pallas foods sponsored prosecco reception.

The after dinner speaker was Mr. Ollie Daniels, CEO of Insight Centre for Data Analytics. Mr. Daniels shared thought-provoking facts about ‘Big data’ and proposed that CIMA’s management accountants are data scientists –and must be cognisant in selecting the right data from the vast qualities available, to continue forecasting the future for our businesses.

Local Member honoured for 40 years service Mr Patrick Thornton pictured with his wife Aileen. Patrick, who 40 years ago this year qualified as a CIMA member, was honoured for his many years involvement in the local area boards and as a CIMA assessor.

Limerick also enjoyed Chris Adams excellent presentation on ‘How our mindset determines our success’, leaving our large audience with plenty to think about on how to improve our mindset for further success.

Further events taking place are Investec’s chief economist’s presentation of ‘Current developments in the Irish economy along with the outlook for 2016’ in Limerick in November; and Damien Costello of Decode Innovation ‘The business of the future through managing data analytics and generation Y’ in Galway, in November.

CIMA’s Western area look forward to seeing more of its members and students at these events, which are always a good opportunity to network with fellow CIMA’s and meet with the Western board who are more than happy to help you maintain and build on your CPD.

Aileen and Patrick Thornton

Western area activities

Donal Murphy; Dev Geraghty CIMA Western Area Secretary; and Ronan Keane

CIMA’s Western area continues to deliver events for all CIMA stakeholders across a broad spectrum of topics.

From l to r: Michael Fallon, ACCA/Rosclerra Irish Meats; Ann Lyons, Ulster Bank; and Edwin Sheil, NUIG.

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WINNERS!

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ITT DUBLIN TRIUMPH AT IRISH FINAL OF CIMA GLOBAL BUSINESS CHALLENGE 2015 ITT Dublin were crowned the national champion at the Irish final of the CIMA Global Busines Challenge, the international business competition held by CIMA in partnership with Barclays and locally sponsored by Dublin Business School and Diageo

IT Tallaght

At the national final, the team had to present their solutions to a reallife CIMA business scenario based on the oil and gas industry. They also had to participate in a question and answer session before a panel of judges.

The team went on to represent Ireland at the global final in Warsaw, Poland, in August 2015 where they competed against 25 other teams from across the world.

IADT

Winners IT Tallaght Darren Farrell, Shane O’Connor; Nathan Riordan and Naheed Bari.

Letterkenny IT

Runners up IADT Fiona Arnold, CIMA at the final with IADT students Claire Ann Ferry; Emmet Kehoe; Una Griffin; David Bolger and Stella Pete; Runners up Letterkenny IT Fiona Arnold, CIMA with LYIT students Claire Fox; Karolina Sobczak; Sean Doherty and Michelle Bourne

Trinity College

UCC

Trinity College Pictured at the final with Claire Lambert, CIMA are Trinity students Ruth Hunter; Maeve O’Neill; Dervla Malone and Siobhan McManus

UCC Pictured at the final with Niall Clancy, CIMA are UCC students Aoife McCarthy; Sean Murphy; Patricia McCarthy and Shane O’Sullivan

Althlone IT

Queen’s University

Althlone IT Pictured at the final with Fiona Arnold, CIMA are AIT students Hew Jun Yap; Songging Jiang; Chang EE Lau and Ng Chung Ming

Queen’s University Belfast Fiona Arnold, CIMA with Queen’s students Aiman Abdullah Sani; Fatin Mohd Aman; Humaira Saidin and Rushdan Mazelan

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EMPLOYERS AT THE CIMA GLOBAL BUSINESS CHALLENGE 2015 The CIMA Global Business Challenge Irish final which took place at ITT Dublin earlier this year provided a unique opportunity for employers to engage with undergraduates from the main business schools.

Barclays

Diageo

Ernst and Young Hedgeserv

Dell

Kerry

Pictured at the Dell stand were Karen O’Malley, CIMA with Dell Finance team representatives Kevin Lyons; Fearghal Carroll and Kevin Power.

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Undergraduate CIMA achievement of excellence awards

Trinity

Athlone IT

From l-r: Teaching Fellow, Neil Dunne; Leona Chow (Award winner) and Christopher Flood, CIMA

NUIM

From l-r: Head of Department, Brendan Doyle; Christopher Flood, CIMA; Darren Kenny (Award winner) and Dean of Faculty of Business and Hospitality, Eoin Langan

Athlone IT

From l-r: Christopher Flood, CIMA and Sean Brady (Award winner)

WIT From l-r: Head of Department of Business, Owen Ross; Christopher Flood, CIMA; Lisa Kelly (Award winner) and Dean of Faculty of Business and Humanities, Eoin Langan

NCI

Seen Mun Chung (Award winner); Dr Thomas O’ Toole, Head of the School of Business; and Martin Harney (Award winner).

NCI Christopher Flood, CIMA and Kevin Hetherton (Award winner)

Christopher Flood, CIMA and Sean Hayes (Award winner)

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THE FUTURE OF FINANCE LEADERSHIP CHALLENGES IN A DIGITAL AGE The CIMA annual conference will take place on Saturday 7 May 2016 at the Rochestown Park Hotel, Cork. On the theme of leadership in the digital age, a panel of renowned business leaders and respected experts will share and discuss their views.

CIMA Ireland annual dinner

Speakers

Cost: €60 per ticket or €600 for a table of ten

•

Myriam Madden CGMA, CIMA President

•

Aongus Hegarty CGMA, President of Dell EMEA

•

Deirdre O’Connor CGMA, MD of Global Asset Management, and former MD of Goldman Sachs

•

Matt English CGMA, CEO, Special Olympics Ireland

•

Peter Simons CGMA, author of the ‘Fast track to Leadership’ report

Date: Saturday 7 May 2016 Venue: Rochestown Park Hotel, Douglas, Cork Guest speaker: Myriam Madden FCMA CGMA, CIMA President

Sponsored by

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WHAT IS CGMA?...

The AICPA and CIMA launched the CGMA designation in January 2012 to elevate the profession of management accounting and establish global criteria for quality. All CIMA members automatically gain the CGMA letters and have access to leading-edge research, tools and techniques to keep you at the forefront of your profession.

You will be part of a global community of professional management accountants sharing best practice and creating innovation. Our joint venture combines the strength of the AICPA in North America with CIMA’s presence in Europe, Asia, Africa and the Middle East.

The CGMA designation therefore provides a huge opportunity to place management accountants on a truly global platform for business excellence.

PAGEPAGE 23 19

CIMA BENEVOLENT FUND CIMAIRELAND IRELAND BENEVOLENT The CIMA benevolent fund here in Ireland supports members and their dependents facing difficulties and hardship caused by serious illness, bereavement, unemployment and other misfortunes.

FUND

The fund is most appreciative of the support given by the members.

Nevertheless, in recent years, the economic climate has had an adverse affect on a number of our members and fund expenditure is again exceeding its income. CIMA Ireland is therefore asking members to consider making a contribution to the fund.

Established in 1992, the fund has helped many members through difficult and stressful times for themselves and their families. Member’s contributions, both financial and advisory, have contributed enormously.

Economic conditions, illness and or bereavement continue to prevent some members achieving the success they had expected in their careers. In most cases this is a temporary setback. Where there is a young family involved, the consequences can be particularly distressing. The people the fund has assisted have heart warming stories in which situations of despair have become manageable, and rectified over time thanks to the contributions by CIMA Ireland membership.

There is no fixed amount asked or expected as every contribution is valuable, but donations in the range of €30 to €50 tend to be the standard. Some members exceed this amount significantly and we acknowledge this extra generosity. Members who wish to contribute to the fund can do so by completing the standing order form. All contributions whether by standing order or once off payment are most appreciated.

STANDING ORDER – ANNUAL PAYMENT Bank Name (The Manager): Account Name:

Account No:

Branch Address:

Sort Code:

On the

day of

each year commencing on the

day of

(in words)

to the following account:

CIMA Benevolent Fund

IBAN number: IE03BOFI90149037010974

pay the sum of €

BIC code: BOFIIE2DXXX

Bank of Ireland, Baggot Street, Dublin 2 My/Our account will at all times contain sufficient funds to enable payment to be effected on the due date: Signed: Date:

Address:

Note: This instruction cancels any previous instruction in favour of the above named under this reference. After returning form, please allow 3-4 weeks for standing order process to be completed. Please return to: Nicola Glynn, Member Services Manager, CIMA Ireland, 5th floor, Block E, Iveagh Court, Harcourt Road, Dublin 2, Republic of Ireland.

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CIMA Ireland 5th floor, block E Iveagh Court, Harcourt Road Dublin 2, Ireland

T. +353 (0)1 6430400 / +44 (0)2890 268490 E. cima.ireland@cimaglobal.com www.cimaireland.com

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