CIMA welcomes OFR Reporting Standards

10 May 2005

CIMA welcomes the publication of the Reporting Standard on the Operating and Financial Review (OFR).

Charles Tilley, Chief Executive of CIMA said:

'The mandatory framework for the OFR represents a tremendous opportunity to step change business reporting. Although many large companies already produce an OFR, extending the requirement to all quoted companies will create an environment of transparency which can only be beneficial to the capital markets'

All participants in the reporting chain ' companies, auditors, regulators, analysts, investors and commentators - must now endeavour to spread and improve best practice. CIMA is keen to assist in this process and this week hosted a forum looking at the impact of the OFR on sustainability reporting. This forum was attended by leading experts from business, investors, standard setters and regulators.'

'The information collected for the OFR should be the top-slice of the management information presented to the Board. If this is not the case, the requirements for the OFR will put the spotlight on any deficiencies and so raise the standard of information used by boards to manage and create value for investors.'

'We do still, however, remain concerned that the final regulation passed by parliament did not include a 'safe harbour' clause and that this may restrict directors' willingness to provide forward looking information.'

For further information please contact:

Lottie Muir, PR Manager, CIMA
020 8849 2407
Lottie.muir@cimaglobal.com

Notes to editors

1. CIMA (the Chartered Institute of Management Accountants) is a leading professional body that offers an internationally recognised qualification in management accountancy, focussing on accounting in business. It is the fastest growing UK based membership body, in terms of members, in both the UK and worldwide and is the voice of over 85,000 students and 65,000 members in 156 countries. CIMA is responsible for the education and training of management accountants who work in industry, commerce and not-for-profit and has more members in the public sector than any other UK based body. CIMA prides itself on the commercial relevance of its syllabus, which is in tune with the activities of high performance organisations, and evolves continually reflecting the latest developments in global business. It is committed to upholding the highest ethical and professional standards of members and students, and to maintaining public confidence in management accountancy.
2. Full details of the 2004 annual review can be viewed in the 2005 Annual General Meeting section at www.cimaglobal.com/annualreview