In doing so, it became the second professional accounting body to fall into the red, after CIMA announced a deficit of Pounds 322,000 early in the week.
And David Shaw, treasurer of the ICAEW, said the institute was budgeting for ‘substantial losses’ in 2001 due to the use of reserves to fund a new database, education and training needs and to develop local infrastructure.
In particular he highlighted a one off Pounds 1m investment in develop learning materials for the professional stage of the new ACA qualification. In addition Pounds 1.9m was spent on member education and training, while the cost of member services climbed 14% to Pounds 13.2m in 2000.
In 1999 the ICAEW reported a surplus of £3.7m on earnings of Pounds 53.4m, following a steady increase in profits from just over Pounds 500,000 in 1996 to Pounds 3.4m in 1998.
Despite the loss in 2000, Shaw said the institute would continue to invest in its new qualification in 2001. These words were echoed by Graham Ward, president of the ICAEW, who said the institute was following through on its new strategic plan and had laid foundations for further enhancement of the institute’s position as a relevant 21st century professional body.
Ward said the ICAEW aimed to produce a world class suite of professional accountancy qualifications and lauded the new ACA qualification.
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