September 2013 Issue 529 www.InternationalAccountingBulletin.com Fair play Implications of UEFA’s new financial rules XXX G XXX G XXX G XXX G G Deloitte’s record £14m fi ne G Lehman Brothers reprised G Critical moment for US audit reporting G Mixed fortunes in Latin America Give your students a business perspective of the world of accounting. Give your students access to content they can trust. Give your students the edge. Subscribe to The Accountant xxxxx A subscription to The Accountant is the ideal accompaniment to an accountancy course of study. Including exclusive features and interviews with major figures in the accountancy sector, The Accountant will help your students to understand the real-world implications of the theory they are learning, and help improve their employability in a competitive jobs market. A weekly newswire gives you regular updates of all the big stories, while IP access means students can view our content anywhere with access to the student portal. 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Contact our subscriptions team on +44(0)20 7563 5688 or email us at [email protected] to find out more. www.vrl-financial-news.com International Accounting Bulletin edITor’s LeTTer ConTenTs Give your students a business news 02-04 All change for the mid-tier ■ SFO to prosecute Olympus over accounting fraud. perspective of the world of ■ Lehman Brothers, a wake-up call for the profession. ot even two years ago, I remember following the loss of PKF UK in a merger speaking to the then chief executive with BDO UK earlier in the year, it’s unlikely accounting. CoMMenT 05 of RSM Tenon, Andy Raynor, who RSM will follow suit. PKF International, for 05: GaLe CrosLey with charm and enthusiasm told me example, decided to rebuild part of its rep- Gale Crosley, a US CPA and consultant nabout all the exciting news at RSM Tenon resentation by appointing two smaller UK for accounting firms examines a more and how the firm was planning to continue practices – which combined are only about a Give your students access to joint approach towards accounting firm growth and calls for the end of so-called growing by M&A and was expecting strong third of the size of former PKF UK. individual tactics. double-digit growth. RSM, as the seventh-largest network glob- The interview at the time was for our UK ally, and with very strong member firms in content they can trust. FeaTures 06-10 survey in December 2011 and only a month key economies such as the US, has as good a o6-07: ueFa FInanCIaL FaIr pLay after publication something went very wrong value proposition as any firm in the market. Amid news of record transfer fees, at the firm and now we see it sold in a pre- However there are very few market players Give your students vincent huck examines UEFA’s new Financial Fair Play rules. pack deal to Baker Tilly UK. of a similar size to RSM Tenon that could, 08-10: audITor reporTInG ChanGes On the one hand this could be interpreted with one move, fill the gap. As this maga- the edge. Subscribe to After 75 years the audit report is finally as a great and encouraging demonstration zine was going to press there was as yet no set to change in the US. of the ambitions of mid-tier companies and announcement of a new UK member firm; may foretell similar deals elsewhere in the however not rushing into a decision on UK The Accountant world, especially as the mid-tier attempts to membership might be wise as, for any net- CounTry surveys 11-20 xxxxx be perceived as a force to be reckoned with work, it’s key to have a strong representative 11-15: LaTIn aMerICa and a credible alternative to the Big Four. ready to take on the increasing competition A subscription to The Accountant is the ideal accompaniment to an accountancy course of study. Including Uneven economic development and However, on a more sentimental note, the among top mid-tier firms. uncertainty around local regulation move also means the loss of one of the UK’s are just two of the challenges facing exclusive features and interviews with major figures in the accountancy sector, The Accountant will help the accounting profession in Latin well known accounting firms, which did a wake-up call your students to understand the real-world implications of the theory they are learning, and help improve America. paul Golden reports. adopt a somewhat bold business strategy and On to more recent events, in mid-Sep- 16-20: FranCe even dared to be listed on the London Stock tember we marked the fifth anniversary their employability in a competitive jobs market. A weekly newswire gives you regular updates of all the big Cramped between tight regulations and Exchange. It also means a change for more of the Lehman Brothers collapse and IAB a stagnant economy, French firms try stories, while IP access means students can view our content anywhere with access to the student portal. to make the most of a difficult market. than 2,500 Tenon employees, who are to be approached several industry experts for their vincent huck reports. integrated into Baker Tilly UK and despite opinions of how the profession has changed no job loss announcements as yet, there will since and whether enough’s been done to certainly be changes as the two firms merge prevent another such collapse (see page 4). Subscribe to The Accountant for: SIGN UP FOR THE FREE NEWSWIRE and set out new business goals. Hopefully, While accountants were cleared of any this process will be smoother than RSM major responsibility leading to the collapse, • IP access to our content. So your students can access our Get free weekly updates and free content. Tenon’s unhappy unions with Bentley Jen- many believe it served as wake-up call for the content campus-wide with one login Sign up here: nison and Ventis which it acquired in 2009 entire profession. editorial advisory Board and 2011 respectively, with those deals and From several comments received we also Kevin McGrath, Crowe Horwath • Content you can trust. We have 125 years of experience http://www.vrl-financial-news.com/system- International CEO their unsuccessful integrations quoted as one gathered more can still be done to improve Kevin arnold, Nexia International of the main reasons for Tenon’s demise. corporate governance and protect stake- delivering accountancy news. pages/headernav/free-news.aspx executive director Geoff Barnes, Baker Tilly International Additionally, the loss of RSM Tenon leaves holders and hopefully debates such as the • Truly global analysis. We cover a range of stories from around president and CEO RSM in want of a new UK representative, overhaul of auditors reporting in the US (see Graeme Gordon, Praxity executive director the world, so your students get a wide perspective of the sector. stephen Jacobs, INPACT International president which could be prove to be difficult and, pages 8 to 10) and increased emphasis on Jon Lisby, Kreston International once found, is highly likely to leave another integrated reporting will go some way to executive director donal watkin, MSI Global Alliance CEO network or association firmless in the UK, facilitate that in the future. Christian Mouillon, Ernst & Young global vice- leading to additional chain reactions. chair, assurance While PKF International decided on ed nusbaum, Grant Thornton International CEO ana Gyorkos DON’T MISS OUT. Subscribe to The Accountant today. Michael reiss von Filski, Geneva Group a change of approach to the UK market [email protected] International CEO Contact our subscriptions team on +44(0)20 7563 5688 Liza robbins, Morison International CEO Martin van roekel, BDO International CEO or email us at [email protected] to find out more. Jean stephens, RSM International CEO robert Tautges, HLB International CEO pauline wallace, PwC head of public policy and regulatory affairs www.vrl-financial-news.com www.InternationalAccountingBulletin.com September 2013 y 1 news round-up International Accounting Bulletin IAB onLIne – sepTeMBer news round-up Top 5 articles uK Act 2006, which sets out the liability issued the following statement: Standard Chartered puts audit pwC tops Big Four of those who convey information “We have been invited to tender out to tender ranking in the uK required by auditors. and are putting in a bid. We are PwC UK increased its revenue by The SFO believes that certain happy to compete on the quality of RSM Tenon sold to Baker Tilly UK 3% to £2.6bn ($4.15bn) in the year people within Gyrus gave misleading our audit work.” in pre-pack and deceptive explanations to to 30 June 2013, retaining its ranking us the auditors working on the PKF International appoints as the largest UK accountancy firm. In pCaoB critical of August Deloitte UK reported £2.5bn in company’s accounts for the fiscal KpMG and pwC audits second UK firm years 2009 and 2010. annual revenues, up 8%.