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Profession's Elite September 2014 Issue 541 www.InternationalAccountingBulletin.com Profession’s elite IAB Annual Award winners ● UK CMA and EC take hard line on new rotation rules ● Profession in France resilient in tough economy ● Latin America’s modern day gold rush ● Unsettled times for Dutch profession International Accounting Bulletin EdiToR’S LETTER CoNTENTS News 02-03 Thanks for a great event ■ PwC UK revenue up 5% to £2.8bn. ■ Deloitte UK growth slows as audit revenues fall. ■ UK CMA and EC take hard line on It’s September and another successful and all who attended the event and awards. new rotation rules International Accounting Bulletin event is If you were unable to attend the session behind us. there will be an article summarising the iAB AwardS 04-08 This year our headline sponsor Aon, as M&A and cyber discussion in the October well as Intuit QuickBooks, CaseWare, Star issue of IAB. o4-08: ANd ThE WiNNER iS... Computers and Xero, enabled us to enhance In this month’s issue you can capture the This month International Accounting the annual awards evening and develop it spirit of the evening from the pictures and Bulletin hosted its annual global industry awards celebrating worldwide best into a half-day conference discussing some awards coverage. While the Forum was a practice in the accounting profession. of the key challenges facing the profession. first for IAB, this year’s Awards were our The awards ceremony was part of a half- The inaugural IAB Forum, which took third and we received over 100 nominations day inaugural IAB accountancy forum in London and joined industry leaders and place on 16 September in London, was the with the judges remarking on a really high old friends from around the world. first such event in the more recent history of quality of submissions this year. The big IAB and the response from the profession winner of the evening was KPMG, which CouNTRy SuRvEyS 09-20 was excellent with many of you compli- was handed the Audit Innovation of the menting us on the agenda and the high- Year Award, Social Media Champion of o9-12: France quality speakers discussing recent M&A the Year Award and Sustainable Firm of the After another year of economic inertia in France, opinion is divided on whether trends and their effects on the industry, and Year Award. Other winners included RSM, anticipated modest growth in 2014 the issue of cyber security for accounting Praxity, Grant Thornton International and and 2015 will translate into increased firms. many more. professional activity. Paul Golden reports. I would like to take this opportunity to The winners also included IAASB chair- 13-19: LatiN AMERica thank Aon Global Professions managing man Professor Arnold Shilder who won the positive economic indicators, SMEs going director Keith Tracey for helping our team Lifetime Achievement Award, IIRC’s Paul international, and accelerated regional economic integration are sources of prepare and secure some of the speakers. Druckman for Personality of the Year and optimism for accounting firms in Latin I would also like to thank all the speakers Kader Kaneye from Niger who won the America, as vincent huck reports. which includes Linklaters partner William Young Accountant of the Year Award. 20-24: NETherlandS Buckley, global CEO for BDO’s EMEA I would like to take this opportunity to Despite high-profile developments region Anders Heede, Grant Thornton encourage you all to nominate again next on audit reform, the shakeout of the International general counsel Dan Lichten- year and battle the competition once more Dutch accounting profession is far from complete. Paul Golden reports. stein and Wragge Lawrence Graham & Co with hopefully some more new contenders partner Jane Howard, who all spoke in the to emerge. M&A session. As well as UK Government We hope that all the positive event feed- BIS assistant director Orla MacRae, PwC back is a good sign for future IAB awards security director Jonathan Burdett, Open- and that we’re able to build on our recent Sky practice director – cyber security, risk achievements and, as always, we’re always Editorial Advisory Board and compliance Nigel Stanley and Intuit keen to hear your views and feedback. Kevin McGrath, Crowe Horwath International CEO QuickBooks head of business development Congratulations again to all our winners Kevin Arnold, Nexia International CEO Nick Williams, who were our panellists in and shortlisted networks and associations. Geoff Barnes, Baker Tilly International president and CEO the cyber session. Graeme Gordon, Praxity executive director I would also like to thank all 17 senior Ana Gyorkos Stephen Jacobs, INPACT International president executives who attended the round table [email protected] Jon Lisby, Kreston International executive director James Mendelssohn, MSI Global Alliance, chairman Christian Mouillon, E&Y global vice- chair, assurance Ed Nusbaum, Grant Thornton International CEO Michael Reiss von Filski, Geneva Group International CEO Liza Robbins, Morison International CEO Martin van Roekel, BDO International CEO Jean Stephens, RSM International CEO Robert Tautges, HLB International CEO Pauline Wallace, PwC head of public policy and regulatory affairs www.InternationalAccountingBulletin.com September 2014 y 1 news RouNd-uP International Accounting Bulletin IAB oNLiNE – SEPTEMBER news RouNd-uP Top 5 articles uK The firm hired 2,700 people and in 2013. Female partner appointments PwC uK revenue up 5% the average distributable profit Profit distributable to partners remain low as KPMG UK adds 52 PwC UK has reported an increase per partner was £722,000, up for 2014 fell from £571m in 2013 partners of £125m in its fee income to 2% from £711,000 in 2013. The to £554m at the end of May, with £2,814m ($4,576m) in the year to firm’s results also include the PwC the average profit earned by EY and the Parthenon Group 30 June 2014. network Middle East practice. partners also decreasing in 2014 complete merger The 5% increase in fee income to £750,000 from £772,000 the uK previous fiscal year. G20 fail to stop global warming: “reflects an improving economy, the deloitte uK growth slows as Overall, employment figures PwC growing confidence of our clients and the ongoing investment we audit revenues fall increased from 3,000 to 3,500, Deloitte UK growth slows as audit have made in the firm over the past Deloitte UK has seen its growth with 72 new partners and 1,500 revenues fall six years to create a responsible, slow to 1.4%, as revenue increased new entry-level positions added. profitable and well diversified to £2.55bn ($4.23bn) for the year Deloitte UK chief executive Grant Thornton continues its business,” according to PwC UK ending 31 May 2014, compared to and senior partner David Sproul external growth strategy chairman and senior partner Ian £2.52bn last year. attributed the slowdown in growth Most retweeted article Powell. The growth figure marks the to “uncertainty” in the market PwC UK saw an increase in fee lowest level in four years and a and added that despite a “year of Grant Thornton continues its income across all its service lines sharp fall compared to the 8% investment” for the firm, doubt external growth strategy with assurance up 6% to £1,025m, revenue increase witnessed in continued to dampen prospects for tax 5% to £714m, deals business 2013 and 11% growth in 2012, the coming months. Read in 170 countries up 3% to £580m and consulting by which was mainly on the back of “Looking ahead, we expect that UK 28% 4% to £495m. strategic investments. better economic conditions will US 10% With assurance services, Among the firm’s service lines, result in significant improvements Mexico 9% including audit, contributing audit fell 1.8%, from £719m in across our markets. Growth has Malaysia 6% to just over £1bn of the overall 2013 to £706m. The decrease increased in the first quarter of India 5% revenue the firm said 63% of comes after last year’s 12% the new financial year and we are Singapore 3% its revenue was generated from increase in fee income in audit. seeing a renewed confidence and Rest of the world 39% clients it does not audit. The decrease in audit is likely optimism in our clients to make Due to retendering rules and down to pending mandatory audit investment decisions. The global pending implementation of the firm rotation and many FTSE ambition of our clients and our European audit reform, the UK 350 already retendering their people is creating opportunities market has seen many FTSE 350 audit contracts. Last week PwC for the firm to increase revenue companies retender their audit forecasted 56 of the FTSE 350 are internationally,” he said. contract. In the past year PwC has to put their audit out to tender “However, while we continue to won audit tenders such as HSBC, this year. make investments for the future, Vodafone and British Land. For Deloitte UK tax revenues we do hold a concern that political PwC has retained its position as remained flat at £562m, compared uncertainty may dampen business the largest professional services to £563m last year. activity later in the year.” firm in the UK, with its close Consulting increased slightly Deloitte UK results also include Join our online community competitor Deloitte UK reporting (0.5%) from £619m last year to the network’s Swiss practice, revenues of just over £2.5bn in the £622m, while corporate finance which contributed £236m to the year to 31 May 2014, an increase bucked the trend with a 4.7% firm, a 13% increase on last year’s Linkedin Group of 1.4%. increase to £424m from £405m figure of £209m.
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