The Institute of Certified Public Accountants of Cyprus

2013
Fi na nci al St at e me nt s


2013

46

78

10

11

12

13 26

 2013

.
2
1
2
1
1
1
1
1
2
1
2
1

CSC Christodoulou Limited

Barclays Bank Plc

11
1096
.. 24935
1355

: [+357] 22 870 030

: [+357] 22 766 360
: info@icpac.org.cy
: www.icpac.org.cy

:
1.
2.

 2013

1.

31. 2013.

2.

,
,
.
,
. ,

, .

3.

2013
3.290
149
4
(39)
(4)
3.400

2012
3.109
199
2
(11)
(9)
3.290

4.

ACCA 31 2013 :

2013
3.045
717

2012
2.981
642

5.

9.

 2013

()

6.

31 2013
3.
2013, ,
19
2013 .
.

7.

:
()

()

8.

,
:
()

:
:

()

:
:

()

:
:

 2013

()
9.

10.

CSC Christodoulou Limited

.
.

20 2014

 2013

( ),
31 2013,
,
,
.




, . 113,

,
.


.
.


.

.
,
,
. ,


,
.

,
.

.

 2013

()

,

31. 2013,


, . 113.


2009 2013, :

.
, .
.

,
, . 113, .
,
.


, ,
34
2009 2013
.

.

CSC Christodoulou Limited

. 24
Iliada Court, 2
3070 ,
20 2014

 2013

31 2013

2013

2012

3
4
5
6
7

912.775
156.990
68.615
7.515
-

880.940
157.904
93.314
3.836
15.000

18

21.141
1.167.036

26.793
17.781
1.195.568

8
9
10
11
12
13
14
15
7
17

429.932
165.859
409.804
61.626
38.045
18.355
19.783
8.509
22.384
115

472.847
235.111
256.752
26.568
92.307
36.049
25.015
20.940
15.000
21.229
-

18
21

385.724
101.657
1.661.793
(494.757)
13.067

210.700
1.412.518
(216.950)
43.305

(481.690)

(173.645)

"Accountancy Cyprus"

()

()

16

13 26
.

 2013

31 2013

1 2012
()
( 22)
31 2012
()
( 22)
31 2013

2.406.830
(173.645)
(20.000)
2.213.185
(481.690)
(20.000)
1.711.495

(. 22)

55.274
(7.937)
20.000
67.337
(2.467)
20.000
84.870

2.462.104
(181.582)
2.280.522
(484.157)
1.796.365

13 26
.
10

 2013

31 2013
.

2013

2012

364.406
52.910
417.316

382.314
132.300
514.614

9.579
41.917
1.516.681
1.568.177

17.056
52.441
1.913.700
1.983.197

1.985.493

2.497.811

1.711.495
84.870
1.796.365

2.213.185
67.337
2.280.522

189.128

217.289

1.985.493

2.497.811

17
18

6,19
20
21

23

20 2014
.

13 26
.
11

 2013

31 2013
2013

2012

22

(481.690)
(2.467)
(484.157)

(173.645)
(7.937)
(181.582)

16
17

(27.088)
22.384

(56.589)
21.229

.

() :


:

()

()









()/
()/

(. 21)

18

18

385.724

210.700

21

101.657

(26.793)

(1.480)

(33.035)

19
20
23

7.477
10.525
(28.162)
(11.640)

(17.056)
(12.764)
9.158
(53.697)

16

27.088

56.589

18

(306.334)

21

(101.657)

18
17

(4.476)
(385.379)

383.793
(8.495)
431.887

(397.019)
1.913.700
1.516.681

378.190
1.535.510
1.913.700

13 26
.

12

 2013

1.

, .113.
11, 1096 .

.


,
,
.
,
. ,

,
.

:
2013

2012

3.290
149
4
(39)
(4)

3.109
199
2
(11)
(9)

3.400

3.290

ACCA 31 2013 :

2013

2012

3.045
717

2.981
642

.
13

 2013

1.

()

22 2013,

.

, 28 2013.

,

.
.
29 2013
,

2013.
,
, .
.
,
,

.

,
.
,
,
21. ,
29 2013
.


18.

,
,
2013, Eurogroup
.
,
,
,

,


.
14

 2013

2.

:

()
,

,
()
, ,
.113.

2013

1 2013.
.
,

.
.

.


.

.
.


. :
()

,

,
,

()

15

 2013

2.

()


.

.


. :

%
3
10
20 33 1/3

, ,
3%
.


.


.




.



, .

.

,
.
. .

, .

16

 2013

2.

()

.
.



. .


.

,
(. 16),
. 18.

.



.

3.

2013

2012

588.820
314.475
9.480

576.570
292.250
12.120

912.775

880.940

180
20
350
60
180

180
20
350
60
180

:
:

17

 2013

4.

ACCA

:

( )

2013

2012

123.620
19.120
14.250

124.060
18.080
15.764

156.990

157.904

40
80

40
80

. 717
31 2013, 285 (2012:
257 642).

5.

2013

203.151
(134.536)

247.281
(153.967)

68.615

93.314

2013

2012

30.575

22.204

32.639
(9.579)
23.060

35.424
(17.056)
18.368

7.515

3.836

6.

2012

18

 2013

7.

2013

2012

15.000

,

:

K.Treppides & Co Limited 5.000

Deloitte, Ernst & Young PricewaterhouseCoopers 2.000
Baker Tilly Klitou, BDO, Consulco Horwarth DSP 1.000

8.

2013

2012

373.783
34.546
15.263
6.340

407.445
5.000
33.733
21.808
4.861

429.932

472.847

8
1

7
2

,
,
,

.

19

 2013

9.

10.

2013

2012

21.219
26.459
63.018
10.420
7.043
7.645
8.863
3.621
973
3.000
13.598

30.067
38.475
108.742
5.464
9.142
9.362
11.022
5.917
3.318
13.602

165.859

235.111

ACCA,
,
,
.

11.

ICAEW, ,
ICAEW
.

12.

2013

2012

26.209
11.836

26.149
66.158

38.045

92.307

(IFAC),
(FEE)
(FCM), .

20

 2013

13.

Accountancy Cyprus
2013

14.

52.475
(34.120)

64.628
(28.579)

18.355

36.049

2013

2012

11.658
-

18.955
7.222

1.587
1.418
5.120

4.172
1.678
4.883
(11.895)

FCM
/ICAEW


ACCA


ACCA

15.

2012

19.783

25.015

2013

2012

4.847
3.662
-

18.231
6.709
(4.000)

8.509

20.940

21

 2013

16.

(.22)

17.

2013

2012

36.847
(9.759)
27.088
27.088

5.530
60.598
(8.016)
58.112
(1.523)
56.589

(10.474)
(3.547)
(14.021)
13.067

(9.023)
(4.261)
(13.284)
43.305

()

()

2013

2012

892.843
-

65.079
203

25.798 38.300
4.273
-

(528.344)
-

493.676
4.476

485.181
8.495

31

892.843

65.282

30.071 38.300

(528.344)

498.152

493.676

133.700
26.785

31.597
6.000

19.570
4.300

(73.505)
(14.701)

111.362
22.384

90.133
21.229

31

160.485

37.597

23.870

(88.206)

133.746

111.362

31

732.358

27.685

6.201 38.300

(440.138)

364.406

382.314

22

 2013

17.

()
()

_11
, ,
26 2008 .
33 1_ 2005 ( 31 2037)
33 . 34
.
()

, 2008
:

:
60.000 :
Deloitte, Ernst & Young, KPMG, PricewaterhouseCoopers K. Treppides & Co
:
( )
( )
20.000 :
Abacus, Baker Tilly Klitou, Grant Thornton, Meritservus Moore Stephens Stylianou

300.000
38.300
20.000
100.000
458.300
1.700
68.344

528.344

2013,
2011.

18.

( .21)

2013

2012

132.300

700.000

306.334
(385.724)
52.910

(357.000)
(210.700)
132.300

2013, 490.000
132.300 31 2012,
4.900
1,00 , 29
2013.

23

 2013

18.

()
, 306.334 47,5%
,
, 306.334 ,
1,00 .
, 31 2013 , 311.234
, 1,00 .
2013,
. ,

.
385.724,
.
210.700, 26.793
2012.

19.

(
), 31
.

20.

21.

2013

2012

16.457
7.427
19.850
43.734
(1.817)
41.917

17.101
7.457
29.585
54.143
(1.702)
52.441

2013

2012

813.121
703.560
1.516.681

1.951.718
(38.018)
1.913.700

/
1,90% (2012:_3,95,%)
0,08% (2012: 0,67%).

24

 2013

26 2013 744.914
201.657 .
Eurogroup 25 2013
,
. 306.334
47,5% ,
306.334 , 1,00 (.18),
101.657 ,

.

22.

31 2013 :
2013
2012

9.953
6.230

1.523
(. 16)
9.953
7.753

(12.000)
(15.150)

(420)
(540)

(12.420)
(15.690)

(2.467)

(7.937)

14 2011
.
2013 21 2014
20.000 (2012: 20.000).

23.

2013

2012

63.380
700
113.088
5.787
6.173

36.600
700
1.096
86.587
36.718
45.000
10.588

189.128

217.289

25

 2013

24.

169.371

.
54.915

.
.
,
,

.

25.

7 8.

26

Financial Statements
2013

Contents
Page
Council and other advisers

28

Report of the Council

29 31

Independent Auditors report

32 - 33

Statement of comprehensive income

34

Statement of changes in reserves

35

Statement of financial position

36

Statement of cash flows

37

Notes to the financial statements

38 51

27

Financial Statements 2013

Council and other advisers

Council
Ioannis Charilaou
Nicos Chimarides
Demetris Halios
Panicos Charalambous
Christis Christoforou
Stavros Pantzaris
Maria Pastellopoulou
Marios Skandalis
Nicos Syrimis
Demetris Taxitaris
Liakos Theodorou
Demetris Vakis

President
Vice President
Secretary

Note
2
1
2
1
1
1
1
2
1
2
1
1

General Manager
Kyriakos Iordanou

Independent Auditors
CSC Christodoulou Limited

Legal adviser
Lellos P Demetriades Law Office LLC

Bankers
Bank of Cyprus Public Company Limited
Hellenic Bank Public Company Limited
Barclays Bank Plc

Registered office
11 Byron Avenue
CY-1096 Nicosia
P.O.Box 24935
CY-1355 Nicosia
Cyprus
Telephone: [+357] 22 870 030
Fax: [+357] 22 766 360
E-mail: info@icpac.org.cy
Website: www.icpac.org.cy

Notes:
1. Practising
2. Non-practising

28

Financial Statements 2013

Report of the Council

1.

The Council presents to the Members its annual report together with the audited
financial statements of the Institute for the year ended 31 December 2013.

Principal activities
2.

The Institutes principal activities are the provision of an organisation for professional
accountants, the support and promotion of the positions and interests of the
accountancy profession, as well as the continuous professional development and
updating of the Members. The Institute is the only recognised by the Council of
Ministers body of accountants in Cyprus and the competent authority for the licensing of
auditors. The Institute is also a competent authority for the exercise of other activities as
provided by relevant laws and powers assigned to it by the Council of Ministers, a
Minister or other authority.

Members
3.

The changes to the number of Members of the Institute during the year were as follows:
Members at the beginning of the year
New Members registered
Former Members re-registered
Members struck off the register
Members deceased
Members at the end of the year

2013
3.290
149
4
(39)
(4)
3.400

2012
3.109
199
2
(11)
(9)
3.290

Student and Graduate Accountants

4.

The numbers of Student and Graduate Accountants of the Joint Examination Scheme
with ACCA at 31 December 2013 were as follows:
Student Accountants
Graduate Accountants

2013
3.045
717

2012
2.981
642

Results
5.

The Institutes results for the year are set out on page 34.

29

Financial Statements 2013

Report of the Council (continued)

Council
6.

The members of the Council at 31 December 2013 and at the date of this report are
shown on page 28. All of them were members of the Council throughout the year 2013,
except for Mr Theodoros Parperis, who served as a member of the Council up to the
annual general meeting on 19 June 2013 when he retired by rotation. He was not
eligible for re-election as he had completed four consecutive three-year terms in the
Council.

7.

According to the Institutes Articles of Association:

(a)

Mr Nicos Syrimis retires by rotation and did not offer himself for re-election.

(b)

Mr Demetris Taxitaris retires by rotation, and offers himself for re-election.

Decisions concerning the operation of the Council

8.

On the basis of the Councils composition as this arose following last years Annual
General Meeting and the Councils formation to a body, the composition of the Councils
Committees was configured as follows:
(a)

Audit Committee
President: Maria Pastellopoulou
Members: Panicos Charalambous
Stavros Pantzaris
Demetris Vakis

(b)

Nomination and Remuneration Committee

President: Ioannis Charilaou
Members: Demetris Halios
Nicos Syrimis
Liakos Theodorou

(c)

Risk Management and Investments Committee

President: Nicos Chimarides
Members: Christis Christoforou
Marios Skandalis
Demetris Taxitaris

9.

The Committees met during the year and discussed the matters within their
competence.

30

Financial Statements 2013

Report of the Council (continued)

Independent Auditors
10.

The Institutes Independent Auditors Messrs CSC Christodoulou Limited have

expressed their willingness to continue in office. A resolution for their re-appointment
and their remuneration will be proposed at the Annual General Meeting.

By order of the Council

Demetris Halios
Secretary
Nicosia
20 May 2014

31

Financial Statements 2013

Independent Auditors report to the Members of

The Institute of Certified Public Accountants of Cyprus
Report on the financial statements
We have audited the accompanying financial statements of the Institute of Certified Public
Accountants of Cyprus (the Institute), which comprise the statement of financial position as
at 31 December 2013, and the statements of comprehensive income, changes in reserves
and cash flows for the year then ended, and a summary of significant accounting policies and
other explanatory information.
Councils responsibility for the financial statements
The Council is responsible for the preparation of financial statements that give a true and fair
view in accordance with International Financial Reporting Standards as adopted by the
European Union and the requirements of the Cyprus Companies Law, Cap 113, and for such
internal control as the Council determines is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud or error.
Auditors responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with International Standards on Auditing. Those
Standards require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditors
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity's preparation of financial statements that give a
true and fair view in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
entity's internal control. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates made by the Council, as well
as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
Opinion
In our opinion, the financial statements give a true and fair view of the financial position of The
Institute of Certified public Accountants of Cyprus as at 31 December 2013, and of its financial
performance and its cash flows for the year then ended in accordance with International
Financial Reporting Standards as adopted by the European Union and the requirements of the
Cyprus Companies Law, Cap 113.

32

Financial Statements 2013

Independent Auditors report (continued)

Report on other legal requirements.
Pursuant to the requirements of the Auditors and Statutory Audits of Annual and Consolidated
Accounts Laws of 2009 and 2013, we report the following:
We have obtained all the information and explanations we considered necessary for the
purposes of our audit.
In our opinion, proper books of account have been kept by the Institute.
The Institutes financial statements are in agreement with the books of account.
In our opinion and to the best of our information and according to the explanations given to
us, the financial statements give the information required by the Cyprus Companies Law,
Cap. 113, in the manner so required.
In our opinion, the information given in the report of the Council is consistent with the
financial statements.
Other matter
This report, including the opinion, has been prepared for and only for the Institutes members
as a body in accordance with Section 34 of the Auditors and Statutory Audits of Annual and
Consolidated Accounts Laws of 2009 and 2013, and for no other purpose. We do not, in
giving this opinion, accept or assume responsibility for any other purpose or to any other
person to whose knowledge this report may come to.

Christos Christodoulou
Certified Public Accountant and Registered Auditor
for and on behalf of
CSC Christodoulou Limited
Certified Public Accountants and Registered Auditors
24 Spyros Kyprianou Avenue
Iliada Court, 2nd floor
CY-3070 Limassol, Cyprus

20 May 2014

33

Financial Statements 2013

Statement of comprehensive income

for the year ended 31 December 2013
General Fund
2013

2012

3
4
5
6
7
18

912.775
156.990
68.615
7.515
21.141
1.167.036

880.940
157.904
93.314
3.836
15.000
26.793
17.781
1.195.568

8
9
10
11
12
13
14
15
7
17

429.932
165.859
409.804
61.626
38.045
18.355
19.783
8.509
22.384
115
385.724
101.657
1.661.793
(494.757)
13.067

472.847
235.111
256.752
26.568
92.307
36.049
25.015
20.940
15.000
21.229
210.700
1.412.518
(216.950)
43.305

(481.690)

(173.645)

Note
Income
Subscriptions and fees from:
Members
Student and Graduate Accountants
Educational seminars
Sale of publications
Contributions
Gain from disposal of investment in financial assets
Other income
Expenses
Staff cost
Other administrative expenses
Quality assurance
Technical support for members
International accountancy bodies and European matters
Accountancy Cyprus magazine
Functions
Disciplinary cases
Educational grant
Depreciation
Doubtful debts
Impairment loss on investment in financial assets
Impairment loss from Cyprus Popular Bank deposits
(Loss)
Finance income net

18
21

16

(Loss) for the year

The notes on pages 38 to 51 form part of these financial statements.

34

Financial Statements 2013

Statement of changes in reserves

for the year ended 31 December 2013
General Fund

At 1 January 2012
Comprehensive loss for the year
Transfer (Note 22)
At 31 December 2012
Comprehensive loss for the year
Transfer (Note 22)
At 31 December 2013

2.406.830
(173.645)
(20.000)
2.213.185
(481.690)
(20.000)
1.711.495

Members
Benevolent
Fund
(Note 22)

55.274
(7.937)
20.000
67.337
(2.467)
20.000
84.870

Total

2.462.104
(181.582)
2.280.522
(484.157)
1.796.365

The notes on pages 38 to 51 form part of these financial statements.

35

Financial Statements 2013

Statement of financial position

at 31 December 2013
2013

2012

364.406
52.910
417.316

382.314
132.300
514.614

9.579
41.917
1.516.681
1.568.177

17.056
52.441
1.913.700
1.983.197

1.985.493

2.497.811

1.711.495
84.870
1.796.365

2.213.185
67.337
2.280.522

189.128

217.289

1.985.493

2.497.811

Note

Assets
Non-current assets
Leasehold property and equipment
Investment in financial assets

Current assets
Stocks
Debtors
Cash at bank

17
18

6,19
20
21

Total assets

Reserves and liabilities

Reserves
General Fund
Members Benevolent Fund
Current liabilities
Creditors
Total reserves and liabilities

23

On 20 May 2014 the Council of The Institute of Certified Public Accountants of Cyprus
authorised these financial statements for issue.

Ioannis Charilaou, President

Demetris Halios, Treasurer

The notes on pages 38 to 51 form part of these financial statements.

36

Financial Statements 2013

Statement of cash flows

for the year ended 31 December 2013
2013

2012

22

(481.690)
(2.467)
(484.157)

(173.645)
(7.937)
(181.582)

16
17
18
18
21

(27.088)
22.384
385.724
101.657

(56.589)
21.229
(26.793)
210.700
-

(1.480)

(33.035)

19
20
23

7.477
10.525
(28.162)
(11.640)

(17.056)
(12.764)
9.158
(53.697)

16
18
21
17
18

27.088
(306.334)
(101.657)
(4.476)
(385.379)

56.589
(8.495)
383.793
431.887

(397.019)
1.913.700
1.516.681

378.190
1.535.510
1.913.700

Note
Cash flows from operating activities
(Loss) for the year:
General Fund
Members Benevolent Fund
Adjustments for:
Interest income
Depreciation
Profit from disposal of investment in financial assets
Impairment loss on investment in financial assets
Impairment loss from Cyprus Popular Bank deposits
(Deficit) from operating activities before working capital
changes
Changes in working capital:
Inventory
Debtors
Creditors
Cash (used in)/generated from operations
Cash flows from investing activities
Interest received
Impairment loss from Bank of Cyprus deposits
Impairment loss from Cyprus Popular Bank deposits
Purchase of equipment
Proceeds from disposal of investment in financial assets
Net cash (for)/from investing activities
Net (decrease)/increase in cash at bank
Cash at bank at the beginning of the year
Cash at bank at the end of the year (Note 21)

The notes on pages 38 to 51 form part of these financial statements.

37

Financial Statements 2013

Notes to the financial statements

1.

General information
The Institute and its administration
The Institute is registered as a company limited by guarantee in accordance with the
provisions of the Cyprus Companies Law, Cap. 113. Its registered office is at 11
Byron Avenue, CY-1096 Nicosia.
The Institute is administered by a Council consisting of twelve members who are
elected by the general meeting of the Members.
Principal activities
The Institutes principal activities are the provision of an organisation for professional
accountants, the support and promotion of the positions and interests of the
accountancy profession, as well as the continuous professional development and
updating of the Members. The Institute is the only recognised by the Council of
Ministers body of accountants in Cyprus and the competent authority for the licensing
of auditors. The Institute is also a competent authority for the exercise of other
activities as provided by relevant laws and powers assigned to it by the Council of
Ministers, a Minister or other authority.
Members
The changes to the number of Members of the Institute during the year were as
follows:
2013

2012

Members at the beginning of the year

New Members registered
Former Members re-registered
Members struck off the register
Members deceased

3.290
149
4
(39)
(4)

3.109
199
2
(11)
(9)

Members at the end of the year

3.400

3.290

Student and Graduate Accountants

The numbers of Student and Graduate Accountants of the Joint Examination Scheme
with ACCA at 31 December 2013 were as follows:

Student Accountants
Graduate Accountants

2013

2012

3.045
717

2.981
642

Taxation
The Institute is not subject to corporation tax in accordance with the Income Tax Law.

38

Financial Statements 2013

1.

General information (continued)

Operating environment of the Institute
On 22 March 2013 legislation was enacted by the House of Representatives
concerning restrictive measures in respect of transactions executed through the
banking institutions operating in Cyprus. The extent and duration of the restrictive
measures are decided by the Minister of Finance and the Governor of the Central
Bank of Cyprus and were enforced on 28 March 2013. The temporary restrictive
measures, with respect to banking and cash transactions include restrictions on cash
withdrawals, the cashing of cheques and transfers of funds to other credit institutions
in Cyprus and abroad. They also provide for the compulsory partial renewal of certain
maturing deposits.
On 29 March 2013 the Central Bank of Cyprus issued decrees relating to Laiki Bank
and Bank of Cyprus, implementing measures for these two banks under the Resolution
of Credit and Other Institutions Law of 2013.
On the basis of the relevant decrees, Laiki Bank was placed into resolution. What
remained in Laiki Bank were mainly the unsecured deposits and assets outside
Cyprus. The assets of Laiki Bank in Cyprus, the insured deposits and the Eurosystem
financing have been transferred to Bank of Cyprus, with compensation for the value of
the net assets transferred, the issue of shares by Bank of Cyprus to Laiki Bank.
The recapitalization process for the Bank of Cyprus was completed in accordance with
the relevant decrees of the Resolution Authority through bail-in, that is, through the
partial conversion of unsecured deposits into shares. The effect on the Institutes
results from the conversion of the unsecured deposits held in Bank of Cyprus into
shares, is presented in the statement of comprehensive income and in Note 21. In
addition, the holders of shares and debt instruments in Bank of Cyprus on 29 March
2013 have contributed to the recapitalization of Bank of Cyprus through the absorption
of losses. The effect on the Institutes results from the fair value loss on Bank of
Cyprus Convertible Capital Securities converted to Bank of Cyprus shares is
presented in the statement of comprehensive income and in Note 18.
Following the positive outcome of the first and second quarterly reviews of Cypruss
economic programme by the European Commission, the European Central Bank and
the International Monetary Fund during 2013, the Eurogroup endorsed the
disbursement of the scheduled tranches of financial assistance to Cyprus.
The uncertain economic conditions in Cyprus, the unavailability of financing, the
restructuring of the banking sector through bail in for Cyprus Popular Bank and Bank
of Cyprus, and the imposition of capital controls together with the current situation of
the banking system and the continuing overall economic recession, have seriously
affected the Institutes results and its investment portfolio and it may affect the
Institutes future results depending on the future developments.

39

Financial Statements 2013

2.

Summary of significant accounting policies

The principal accounting policies adopted in the preparation of these financial
statements are set out below:
Basis of preparation
The financial statements are presented in Euro () and were prepared under the
historical cost convention, as modified by the revaluation at fair value of financial
assets at fair value through profit or loss, in accordance with International Financial
Reporting Standards (IFRSs) as adopted by the European Union, and the
requirements of the Cyprus Companies Law, Cap.113.
Adoption of new and revised standards and interpretations
During the year 2013 the Institute adopted all the new and revised IFRSs that are
relevant to its operations and are effective for accounting periods beginning on
1.January 2013. This adoption did not have a material effect on the accounting
policies of the Institute.
At the date of approval of these financial statements, standards and interpretations
were issued by the International Accounting Standards Board which were not yet
effective. Some of them were adopted by the European Union and others not yet. The
Council expects that the adoption of these financial reporting standards in future
periods will not have a material effect on the financial statements of the Institute.
Revenue recognition
The subscriptions of Members and Students are recognised as income when
collectible. Participations in seminars organised by the Institute are recognised as
income on the date on which the seminars are held. Interest income is recognised on
an accrual basis.
Employee benefits
The Institute and the employees contribute to the Government Social Insurance Fund
based on the employees salaries. In addition the Institute:
(a)

operates a defined contribution scheme for the employees, the assets of which
are held in a separate trustee-administered fund, and which is funded by
payments of the employees and the Institute, and

(b)

provides the employees with medical care through a Group Medical Insurance
maintained with an insurance company with contributions by the Institute.

The Institutes contributions are expensed in the period incurred and are included in the staff
cost.

40

Financial Statements 2013

2.

Summary of significant accounting policies (continued)

Leasehold property and equipment
The renovation of the leasehold property and the equipment are stated at historical
cost less grants and depreciation. The historical cost includes expenditure that is
directly relevant to the renovation of the leasehold property and the acquisition of
equipment. Depreciation is calculated using the straight-line method to write off the
cost of the renovation of the leasehold property and each item of equipment over their
estimated useful life. The annual depreciation rates are as follows:
Renovation of leasehold property
Office equipment
Computer hardware and software
Works of art

%
3
10
20 33 1/3
Nil

Building grants, except the one relating to a donation of works of art, are amortised at
an annual rate of 3% consistent with the depreciation rate for the renovation of the
leasehold property.
The carrying amount of the leasehold property or of an item of equipment is written
down immediately to its recoverable amount if the carrying amount is greater than the
estimated recoverable amount.
Expenditure for repairs and maintenance of the leasehold property and equipment is
charged to the statement of comprehensive income in the year it is incurred.
Investment in financial assets
The investment in financial assets which is intended to be held for an indefinite period
of time is classified as financial asset in the non-current assets and is stated at fair
value at the date of the statement of financial position. The investment in financial
assets is recognised initially at cost and subsequently adjusted to fair value based on
the market price according to the prices of the Cyprus Stock Exchange in which it is
listed, or with other commonly acceptable valuation techniques. The profit or loss that
arises from the adjustment to fair value is recognised in the statement of
comprehensive income.
Stocks
Stocks are stated at cost or net realisable value, whichever is lower. The cost is
determined using the weighted average cost method. It excludes borrowing costs.
The net realisable value is the estimated selling price in the ordinary course of
business, less applicable selling expenses.
Debtors
Debtors are carried at the original invoice amount less an estimate made for doubtful
debts based on a review of all the outstanding amounts at the year end. Bad debts
are written off when identified.

41

Financial Statements 2013

2.

Summary of significant accounting policies (continued)

Members Benevolent Fund
The revenues of the Members Benevolent Fund are derived from special contributions
of the Members of the Institute to meet possible cases of Members who are in
desperate financial need. The Institutes Council is responsible for its management.
Comparatives
The presentation of comparative figures has been adjusted to conform to changes in
presentation in the current year. These adjustments relate to the presentation of loss
on investment in financial assets, which, at the comparable year, were disclosed under
finance costs (Note 16), but are now disclosed separately on the face of the Statement
of Comprehensive Income and in Note 18. These reclassifications had no impact on
earnings for the year.
Fair values
The fair values of the Institutes financial assets and liabilities approximate their
carrying amounts at the date of the statement of financial position.

3.

Subscriptions and fees from Members

Members subscriptions
Practising certificate fees
Members registration/re-registration fees

2013

2012

588.820
314.475
9.480

576.570
292.250
12.120

912.775

880.940

180
20
350
60
180

180
20
350
60
180

The subscriptions and fees per Member are as follows:

Subscriptions:
Active Member
Retired Member
Practising certificate fee
New Member registration fee
Member re-registration fee

42

Financial Statements 2013

4.

Subscriptions from Student and Graduate Accountants

Student Accountants subscriptions

Graduate Accountants subscriptions
Subvention fee from ACCA

Subscriptions per:
Student Accountant
Graduate Accountant (see below)

2013

2012

123.620
19.120
14.250

124.060
18.080
15.764

156.990

157.904

40
80

40
80

The subscription of Graduate Accountants is voluntary. Out of 717 Graduate

Accountants at 31 December 2013, only 285 opted to become subscribers (2012: 257
out of 642).

5.

Educational seminars
2013

203.151
(134.536)

247.281
(153.967)

68.615

93.314

2013

2012

Proceeds from sale of publications

30.575

22.204

Cost of publications purchased

Less: Stock of publications at the end of the year
Cost of publications sold

32.639
(9.579)
23.060

35.424
(17.056)
18.368

7.515

3.836

Participation fees
Cost of seminars
Net income

6.

2012

Sale of publications

Net income

43

Financial Statements 2013

7.

Contributions

Contributions for a grant to the University of Cyprus

2013

2012

15.000

Last years contributions concerned a grant to the University of Cyprus to support

accounting research programmes and were made by the following accountancy firms:

K.Treppides & Co Limited 5.000

Deloitte, Ernst & Young and PricewaterhouseCoopers 2.000 each
Baker Tilly Klitou, BDO, Consulco and Horwarth DSP 1.000 each

There were no other contributions in the current year.

8.

Staff cost

Salaries
Retirement gratuity
Social insurance and other funds
Provident Fund
Medical Care Plan

Average number of employees:

Full time
Part time

2013

2012

373.783
34.546
15.263
6.340

407.445
5.000
33.733
21.808
4.861

429.932

472.847

8
1

7
2

The Institute has a defined contributions scheme, The Institute of Certified Public
Accountants of Cyprus Provident Fund, which is funded separately and prepares its
own financial statements, whereby employees are entitled to payment of certain
benefits upon retirement or prior to the termination of their service.

44

Financial Statements 2013

9.

Other administrative expenses

Stationery and printing

Postages, telephones and messenger
Professional fees
Donations
Cleaning
Electricity
Entertainment
Computer software
Staff recruitment
Auditors fees
Miscellaneous

10.

2013

2012

21.219
26.459
63.018
10.420
7.043
7.645
8.863
3.621
973
3.000
13.598

30.067
38.475
108.742
5.464
9.142
9.362
11.022
5.917
3.318
13.602

165.859

235.111

Quality assurance
The quality assurance expenses represent amounts paid to ACCA, under two
agreements entered into by the Institute with them, for monitoring on the Institutes
behalf, the audit and other professional services provided by accountancy firms.

11.

Technical support for Members

The expenses for technical support for Members represent amounts paid to ICAEW,
under an agreement signed with them by the Institute, for access to all Members to
ICAEW products and services for auditing and financial reporting matters.

12.

International accountancy bodies and European matters

Subscriptions to international accounting bodies

Participations in councils, committees and congresses

2013

2012

26.209
11.836

26.149
66.158

38.045

92.307

The Institute is a member of the International Federation of Accountants (IFAC), the

Federation of European Accountants (FEE) and the Federation of Mediterranean
Accountants (FCM), and participates actively in their activities.

45

Financial Statements 2013

13.

Accountancy Cyprus magazine

2013

Printing and distribution cost

Income from advertisements
Net expenses

14.

52.475
(34.120)

64.628
(28.579)

18.355

36.049

2013

2012

Functions

Annual General Meeting

FCM conference
ICPAC/ICAEW conference and audit policy debate
Press conferences
ACCA Workshop
Member networking events
Other functions
ACCA sponsorship

15.

2012

11.658
1.587
1.418
5.120
-

18.955
7.222
4.172
1.678
4.883
(11.895)

19.783

25.015

2013

2012

4.847
3.662
8.509

18.231
6.709
(4.000)
20.940

Disciplinary cases

Legal advisers fees

Disciplinary Committee members fees
Disciplinary Committee fines

46

Financial Statements 2013

16.

Finance costs net

Finance income
Interest from investment in financial assets
Bank interest income
Defence contribution on interest
Transfer to the Members Benevolent Fund (Note 22)
Finance costs
Credit card fees
Bank charges
Finance income - net

17.

2013

2012

36.847
(9.759)
27.088
27.088

5.530
60.598
(8.016)
58.112
(1.523)
56.589

(10.474)
(3.547)
(14.021)
13.067

(9.023)
(4.261)
(13.284)
43.305

Leasehold property and equipment

Leasehold
Office Computers
property (a) equipment

Works of
art

Building
grants (b)

Total
2013

Total
2012

Cost
At 1 January
Additions

892.843
-

65.079
203

25.798
4.273

38.300
-

(528.344)
-

493.676
4.476

485.181
8.495

At 31 December

892.843

65.282

30.071

38.300

(528.344)

498.152

493.676

Depreciation
At 1 January
Charge for the year

133.700
26.785

31.597
6.000

19.570
4.300

(73.505)
(14.701)

111.362
22.384

90.133
21.229

At 31 December

160.485

37.597

23.870

(88.206)

133.746

111.362

Net book value

At 31 December

732.358

27.685

6.201

38.300

(440.138)

364.406

382.314

(a)

Leasehold property

The leasehold property represents the Government residence at 11_Byron Avenue in

Nicosia, that was renovated by the Institute on the basis of a leasehold agreement,
and as from 26 March 2008 its offices are housed there. The lease is for a period of
33 years as from 1 January 2005 (that is until 31 December 2037) and may be
extended for a further period of 33 years. The rent is 34 per annum.

47

Financial Statements 2013

17.

Leasehold property and equipment (continued)

(b)

Building grants

In connection with the cost of the renovation of the leasehold property, in 2008 the
Institute secured the following grants:

Grants based on an advertising package for the Members of the Institute:

Major sponsors at 60.000 each:
Deloitte, Ernst & Young, KPMG, PricewaterhouseCoopers and K. Treppides & Co
Sponsors Individuals:
Michalakis Zampelas (in the form of a donation of works of art)
Ioannis Papakyriakou (in memory of the EOKA hero Elias Papakyriakou)
Sponsors Companies at 20.000 each:
Abacus, Baker Tilly Klitou, Grant Thornton, Meritservus and Moore Stephens Stylianou

300.000
38.300
20.000
100.000
458.300
1.700
68.344

Contribution by Michalakis Christoforou, former President of the Institute

Subsidy from the Town Planning Department

528.344

The major sponsors can advertise their services in the Institutes magazine until the
year 2013, whilst the sponsors could do so until the year 2012.

18.

Investment in financial assets

At the beginning of the year

Conversion of Bank of Cyprus deposits into shares
(Note 21)
Disposal
Impairment at fair value
At the end of the year

2013

2012

132.300

700.000

306.334
(385.724)

(357.000)
(210.700)

52.910

132.300

During the year 2013, securities with nominal value of 490.000 and net book value of
132.300 which were available at 31.December 2012, were converted to 4.900 Bank
of Cyprus ordinary shares with nominal value 1,00 each, as a result of the Decree
dated 29 March 2013.
In addition, an amount of 306.334 which corresponds to 47,5% of the Institutes
unsecured deposits with Bank of Cyprus, has been converted into 306.334 Bank of
Cyprus ordinary shares of 1,00 each.
As a result, at on the 31st December 2013, the Institute held in total 311.234 shares in
Bank of Cyprus with nominal value of 1,00 each.

48

Financial Statements 2013

18.

Investment in financial assets (continued)

Due to the events of 29th March 2013, the shares of Bank of Cyprus are still not listed
in the Stock Exchanges of Cyprus and Athens. Consequently, the fair value of the
shares was estimated using alternative valuation methods by a professional valuer.
The loss on revaluation amounting to 385.724 was transferred to the Statement of
Comprehensive Income for the year. The respective loss on revaluation for the
previous year was 210.700, whereas an amount of 26.793 related to profit on
disposal during the year 2012 of part of the financial asset.

19.

Stocks
Stocks represent books (volumes of International Financial Reporting Standards),
which were available as at 31 December and sold to Members after the end of the
year.

20.

Debtors

Debtors from:
Seminars
Advertisements in publications
Other debtors and prepayments
Impairment provision for doubtful debts

21.

2013

2012

16.457
7.427
19.850
43.734
(1.817)
41.917

17.101
7.457
29.585
54.143
(1.702)
52.441

2013

2012

813.121
703.560

1.951.718
(38.018)

1.516.681

1.913.700

Cash at bank

Fixed term and/or notice deposits

Demand accounts

The weighted average interest rate for the fixed term and/or notice deposits was
1,90% (2012: 3,95%) and for the immediate demand accounts 0,08% (2012: 0,67%).
On 26 March 2013, the Institute held deposits in Bank of Cyprus and Laiki Bank
amounting to 744.914 and 201.657, respectively. As a result of the decision taken
on 25 March 2013 by the Eurogroup and the subsequent Decrees of the Central Bank
of Cyprus regarding Bank of Cyprus, the deposits held by the Institute in Bank of
Cyprus have been impaired. An amount of 306.334, which corresponds to 47.5% of
the unsecured deposits in Bank of Cyprus, had been converted into 306.334 ordinary
shares of Bank of Cyprus of 1,00 each (Note 18), whilst an amount of 101.657 held
as deposit in Laiki Bank, was directly impaired and transferred to the Statement of
Comprehensive Income.
49

Financial Statements 2013

22.

Members Benevolent Fund

The analysis of the results of the Members Benevolent Fund for the year ended
31.December 2013 is as follows:
2013

Income
Contributions
Finance income (Note 16)
Expenses
Assistance to Members in financial need
Payment of subscriptions of Members in financial need

Deficit for the year

2012

9.953
9.953

6.230
1.523
7.753

(12.000)
(420)
(12.420)

(15.150)
(540)
(15.690)

(2.467)

(7.937)

On 14 June 2011 the Institutes Council decided to transfer an amount from its
surpluses to the Members Benevolent Fund on an annual basis. For the year 2013 it
was decided on 21 January 2014 to transfer an amount of 20.000 (2012: 20.000).

23.

Creditors

Amounts received in advance for:

Subscriptions
Practising certificate fees
Advertisements on website
Accrued expenses for quality assurance
VAT payable
Retirement gratuity payable
Other creditors and accrued expenses

2013

2012

63.380
700
113.088
5.787
6.173

36.600
700
1.096
86.587
36.718
45.000
10.588

189.128

217.289

50

Financial Statements 2013

24.

Contingent liability
At the date of this report there is a pending claim of architects POLYTIA Armos for
fees due and compensations amounting to 169.371 due to delays experienced in the
progress of the renovation of the Institutes leasehold building and its declaration as a
listed building. A compromise proposal by POLYTIA Armos to reduce the above
amount to 54.915 was not accepted by the Institutes Council and the matter was
referred to Arbitration under the project engagement terms with the said architects.
The Arbitrator is Mr Alekos Markides.
The Council of the Institute, after taking into consideration all the facts and relevant
professional advice, is of the opinion that there are no reasons for which any provision
should be made with regard to the above claim.

25.

Events after the reporting period

There were no significant events after the reporting period that have a bearing on the
understanding of the financial statements.

Independent Auditors Report pages 32 33

51