For the Year Ended

Company No. 1839569

CCAB LIMITED

ANNUAL REPORT

FOR THE YEAR ENDED

31 DECEMBER 2004

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CCAB LIMITED

REPORT OF THE DIRECTORS

The Directors submit their report and the financial statements of the Company for the year ended 31 December 2004.

REVIEW OF BUSINESS

The principal activities of the Company during the year were designed to enable the members of the Company to act in concert to promote the advancement of the effectiveness and standing of the accountancy profession of the United Kingdom and Republic of Ireland. With effect from 1 April 2004, the Financial Reporting Council (FRC) widened its remit to include issues previously dealt with by the Accountancy Foundation and its subsidiary boards. CCAB contributes one-third of the FRC’s annual budget (£2.292m) and these costs are reflected in the increased turnover and cost of services included in the profit and loss account. The increase in debtors and income in advance at the end of 2004 primarily reflects the new billing arrangements for the FRC, which operates to a 31 March year end; invoices for the final FRC quarter to March 31 2005 were raised before the year end.

The members of the company are The Institute of Chartered Accountants in England and Wales, The Association of Chartered Certified Accountants, The Chartered Institute of Management Accountants, The Institute of Chartered Accountants of Scotland, The Chartered Institute of Public Finance and Accountancy and The Institute of Chartered Accountants in Ireland. The Institute of Chartered Accountants in England and Wales is the Company’s parent undertaking within the meaning of the Companies Act 1985. The other five members are each related undertakings.

There is a contract between the Company and The Institute of Chartered Accountants in England and Wales to provide administrative and secretarial services to the Company.

Under the constitution of the Company, which is a non-profit making organisation, all costs incurred by the Company are rechargeable to the shareholders.

DIRECTORS

The Directors set out in the table below have held office during the whole of the period unless otherwise stated.

Name / Nominating Institute / Appointed / Resigned
DJ Illingworth [1] / The Institute of Chartered Accountants in England and Wales / 9 June 2004
P Druckman [2] / 9 June 2004
JRS Brace / The Association of Chartered Certified Accountants
CA Ighodaro / The Chartered Institute of Management Accountants / 12 June 2004
Prof GR Kaye / 12 June 2004
ML McKillop / The Institute of Chartered AccountantsofScotland / 23 April 2004
I Robertson / 23 April 2004
H Daniels / The Chartered Institute of Public Finance and Accountancy / 17 June 2004
M Barnes / 17 June 2004
J Hunt / The Institute of Chartered Accountants in Ireland / 7 May 2004
TF O’Rourke / 7 May 2004

CCAB LIMITED

REPORT OF THE DIRECTORS (continued)

No Director had any interest in the share capital of the Company during the year.

DIRECTORS' RESPONSIBILITIES FOR THE FINANCIAL STATEMENTS

Company law in the United Kingdom requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the directors have:

•selected suitable accounting policies and applied them consistently;

•made judgements and estimates that are reasonable and prudent;

•followed applicable United Kingdom accounting standards; and

•prepared the financial statements on the going concern basis.

The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 1985. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

ELECTIVE RESOLUTIONS

Elective resolutions have been passed for the purposes of:

-dispensing with laying of accounts and reports before general meeting;

-dispensing with the holding of an annual general meeting; and

-dispensing with the annual appointment of auditors.

AUDITORS

RSM Robson Rhodes LLP is appointed auditor of the Company until such time as the Company or the auditors otherwise determine in accordance with the elective resolution above.

Approved by the Board on

And signed on its behalf by

E E Anstee

Secretary

CCAB LIMITED

INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF

CCAB LIMITED

We have audited the financial statements on pages 4 to 8.

This report is made solely to the Company’s members, as a body, in accordance with Section 235 of the Companies Act 1985. Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective Responsibilities of Directors and Auditors

The Directors' responsibilities for preparing the Directors' Report and the financial statements in accordance with applicable United Kingdom Accounting Standards are set out in the Directors' Report.

Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and United Kingdom Auditing Standards. We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with the Companies Act 1985. We also report to you if, in our opinion, the Directors' Report is not consistent with the financial statements, if the Company has not kept proper accounting records, if we have not received all the information and explanations we require for our audit, or if information specified by law is not disclosed.

We read the information contained in the Directors' Report and consider whether it is consistent with the audited financial statements. We consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the financial statements. Our responsibilities do not extend to any information outside the Directors' Report.

Basis of Audit Opinion

We conducted our audit in accordance with Auditing Standards issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the directors in the preparation of the financial statements, and of whether the accounting policies are appropriate to the Company's circumstances, consistently applied and adequately disclosed.

We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.

Opinion

In our opinion the financial statements give a true and fair view of the state of affairs of the Company as at 31 December 2004 and of its result for the year then ended and have been properly prepared in accordance with the Companies Act 1985.

RSM Robson Rhodes LLP

Chartered Accountants and Registered Auditor

London

Date: 2005

CCAB LIMITED

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2004

2004 / 2003
Note / £ / £
Turnover / 3,114,278 / 1,450,853
Services supplied by parent undertaking / 8 / 3,114,278 / 1,450,853
Result for the financial year / 2,7 / - / -

All activities are continuing.

The Company has no recognised gains and losses for the two years ended 31 December 2004.

The notes on pages 6 to 8 form part of these accounts.

CCAB LIMITED

BALANCE SHEET AS AT 31 DECEMBER 2004

2004 / 2003
Note / £ / £ / £ / £
Current Assets
Debtors / 4 / 791,270 / 148,596
Cash at Bank / 1,000 / 1,000
792,270 / 149,596
Creditors: amounts falling due within one year / 5 / 791,270 / 148,596
Net Current Assets / 1,000 / 1,000
Capital and Reserves
Called up Share Capital / 1,000 / 1,000
Profit and Loss Account / - / -
1,000 / 1,000

Approved by the Board on 2005.

Ian Morris

Director

The notes on pages 6 to 8 form part of these accounts.

CCAB LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED

31 DECEMBER 2004

1.ACCOUNTING POLICIES

a.Basis of Accounting

The financial statements are prepared under the historical cost convention and in accordance with applicable United Kingdom accounting standards.

b.Turnover

Turnover represents costs recoverable from Members.

2.RESULT FOR THE FINANCIAL YEAR

The result for the financial year is stated after incurring costs for services supplied by the parent undertaking. CCAB Limited incurred no other charges and has no employees.

Other than as part of the service charge, there is no direct charge for the following:

Auditors' Remuneration

Staff Costs

Directors' Remuneration

Interest Payable

There is no contract of service between the Company and the Directors.

The parent undertaking incurs no employment costs of the Directors, but does reimburse incidental expenses. These are charged to the Company as part of the service charge.

3.TAXATION

No provision has been made for taxation (2003 - £nil)on the basis that the company does not trade and is non-profit making.

  1. DEBTORS

2004 / 2003
£ / £
Amounts due from parent undertaking / 163,405 / 107,978
Other debtors – amounts due from related undertakings / 627,865 / 40,618
791,270 / 148,596

CCAB LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED

31 DECEMBER 2004

  1. CREDITORS: amounts falling due within one year

2004 / 2003
£ / £
Income in advance / 773,517 / -
Creditors – amounts due to related undertaking / 6,927 / 101,530
Accruals / 10,826 / 47,066
791,270 / 148,596

6.CALLED UP SHARE CAPITAL

2004 / 2003
£ / £
Authorised
1,000 ordinary shares of £1 each / 1,000 / 1,000
Allotted and Called Up
1,000 ordinary shares of £1 each / 1,000 / 1,000

7.RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS


CCAB LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED

31 DECEMBER 2004

8.RELATED PARTY TRANSACTIONS

There is an agreement between the Company and The Institute of Chartered Accountants in England and Wales (ICAEW), which is a member of the Company, to provide administrative and secretarial services to the Company.

The total value of the Company's transactions which amounted to £3,114,278 (2003: £1,450,853) were borne in the first instance by the ICAEW and were then recharged to the Company. The Company’s entire income is derived from its parent company and related undertakings as follows:

ICAEW / ACCA / CIMA / ICAS / CIPFA / ICAI / Total
Group
FRC / 1,207,942 / 564,187 / 433,055 / 107,491 / 54,601 / 137,124 / 2,504,400
FEE / 118,429 / 64,908 / 55,896 / 13,007 / 12,893 / - / 265,133
IFAC / 91,259 / - / 43,073 / 10,023 / 9,935 / 10,863 / 165,153
Ethics Group / 20,473 / 11,220 / 9,662 / 2,248 / 2,229 / 2,437 / 48,269
IAASB / 13,876 / 7,606 / 6,550 / 1,524 / 1,511 / 1,652 / 32,719
Audit Strategy Forum / 2,608 / 1,403 / 1,232 / 287 / 284 / 311 / 6,152
Administration / 39,212 / 21,490 / 18,507 / 4,307 / 4,269 / 4,667 / 92,452
2004 total / 1,493,799 / 670,841 / 567,975 / 138,887 / 85,722 / 157,054 / 3,114,278
2003 total / 617,631 / 344,692 / 293,052 / 67,466 / 68,506 / 59,506 / 1,450,853

At the end of the year, the following amounts were owed by/(owed to) the parent and related parties:

2004
£ / 2003
£
ICAEW / 163,405 / 107,978
ACCA / 125,124 / (80,748)
CIMA / 341,715 / 32,929
ICAS / 71,626 / (10,021)
CIPFA / (6,927) / 7,689
ICAI / 89,400 / (10,761)

9.ULTIMATE PARENT UNDERTAKING

The Company is a subsidiary undertaking as defined in the Companies Act 1985. The parent undertaking is The Institute of Chartered Accountants in England and Wales, a body formed under Royal Charter. The Annual Report and Accounts of the parent undertaking may be obtained from The Institute of Chartered Accountants in England and Wales, PO Box 433 Chartered Accountants’ Hall, Moorgate Place, London, EC2P 2BJ

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[1] Chairman until 9 June 2004

[2] Chairman from 9 June 2004