CIMA puts Foundation decision on hold
One of the six accountancy bodies will wait until the outcome of a government inquiry before deciding on whether it will remain in the newly-established accounting watchdog.
Link: Foundation faces test of faith
CIMA, which represents more than 57,000 qualified management accountants, last week reviewed a report on whether or not it should stay in the Accountancy Foundation.
But the council meeting agreed to defer any decision until after the results of the Treasury and Department of Trade review of accountancy regulation is published next year.
Charles Tilley, CIMA’s chief executive, said: ‘As one of the six bodies that helped set up the Accountancy Foundation, CIMA is committed to the regulatory regime and is working with all parties to ensure that the vital perspective of the accountant in business is fully reflected in its work.’
He added CIMA’s commitment to the framework would expire in December 2003 and the institute had therefore begun the process of reviewing its involvement with the Foundation.
Under membership rules, CIMA and the other five accountancy bodies would have to give six months’ notice of their intention to quit the organisation. The government was originally due to review the success of the Foundation after it had been running for five years, but decided to bring forward the review in response to recent accounting scandals.
Review results are to be published next January, alongside Derek Higgs’ review of non-executive directors.