FINANCIAL RESULTS
E&Y Global revenue grows 15%
Ernst & Young (E&Y) announced its worldwide
combined revenues increased to $21.1 billion for the fiscal year
ending 30 June 2007. This represents a growth rate of 15 percent.
Despite the growth, E&Y remains third in TA sister
publication International Accounting Bulletin’s global
firm rankings list, behind PricewaterhouseCoopers Global (PwC) and
Deloitte Global. This year, PwC reported that gross revenues of its
network of firms increased 10.5 percent to $25.2 billion over the
financial year ending 31 May 2007.
PEOPLE
Grant joins IAASB
Jon Grant, executive director of the UK Auditing Practices Board,
has been appointed to serve on the International Auditing and
Assurance Standards Board (IAASB). He will sit on the board for
three years starting this January. Paul Boyle, chief executive of
the UK Financial Reporting Council, welcomed Grant’s appointment.
“Jon Grant’s appointment to the IAASB is international recognition
of his expertise and helps the UK remain influential in the
development of international auditing standards,” he said.
PEOPLE
Newman to take helm of BDO
BDO International has revealed Jeremy Newman is to become chief
executive of the global network next year. Newman has been managing
partner of UK member firm BDO Stoy Hayward since 2001. His term is
due to end in September 2008 and he will succeed current chief
executive Frans Samyn at BDO International a month later. BDO cited
his leadership on topical issues as one of the key attributes that
makes him an ideal candidate to promote the network’s market
position, strength and capabilities.
IFRS
AICPA supports IFRS
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By GlobalDataThe American Institute of Certified Public
Accountants (AICPA) has recommended that the US Securities and
Exchange Commission (SEC) harmonise US and international financial
reporting. This would include allowing US companies to report
financial results using IFRS. In a comment letter to the SEC, the
AICPA said: “We believe one common accounting language would
benefit investors, as well as issuers and the capital markets.” It
also encouraged the SEC to gather information on the number of
public companies that would choose IFRS.
REGULATION
Canada issues GAAP schedule
The Canadian Accounting Standards Board has published a summary of
future changes to Canadian GAAP. The board has released the
publication in anticipation of the changeover to IFRS, which is
expected to take place on 1 January 2011. The document summarises
the changes that will take place to Canadian accounting standards
between now and 2011. It also shows when certain parts of IFRS will
be incorporated into Canadian GAAP.
PEOPLE
Pecarich receives tax award
The American Institute of Certified Public
Accountants (AICPA) has awarded Pamela Pecarich the Arthur J Dixon
Memorial Award, which is the highest accolade the institute gives
in the area of taxation. Pecarich has devoted her career to the
area of tax policy at federal and state level. She has also been a
volunteer leader with the AICPA. The award was presented at the
AICPA’s national conference on federal taxes in Washington.
RESEARCH
More companies recognise risk
A KPMG International study has suggested that risk management could
become the fourth performance indicator for companies. However,
only 50 percent of companies surveyed believe successful
implementation of risk management is achievable within the next
three years. The research shows that many companies accept risk
management plays a crucial role in their performance. John Abbot,
head of management assurance services at KPMG, commented: “The time
has come for internal risk and control teams to make the move from
simply keeping score, complying with regulations and limiting
losses to actually generating value.”
REGULATION
EC calls for quicker reform
European Commissioner for Internal Market and Services Charlie
McCreevy said progress had been made in accounting reforms
throughout Europe, but has called on EU states to do more to
implement the EU’s Eighth Directive. McCreevy made the comments to
the congress of German public auditors in Berlin. He said: “We have
come a long way in creating an appropriate framework in which
accounting, auditing and company law rules can play a decisive role
in shaping the future of Europe’s capital markets. Much remains to
be done, especially at member state level, and this is where the
focus of attention should now shift.”
STANDARDS
Australia to launch clarity project
The Auditing and Assurance Standards Board (AUASB) has announced
that Australian Auditing Standards (ASA) will be further revised
and reissued based on the new clarity format versions of the
International Standards on Auditing. AUASB chair Merran Kelsall
said the revised ASAs will be operative in Australia for audits of
financial reports for periods beginning on or after 1 January 2010.
“The AUASB will release the proposed revised Australian standards
as exposure drafts during the course of 2008 and early 2009,” he
said, while adding that the full schedule for the review has not
yet been confirmed.
STANDARDS
FASB votes against deferral
The US Financial Accounting Standards Board has reaffirmed its vote
against a blanket deferral of Statement 157 Fair Value
Measurements. For fiscal years beginning after 15 November 2007,
companies are required to implement the standard for financial
assets and liabilities, as well as for any other assets and
liabilities that are carried at fair value on a recurring basis in
financial statements. It did, however, provide a one-year deferral
for the implementation of Statement 157 for other non-financial
assets and liabilities.
RECRUITMENT
Staffing remains a challenge
Finding qualified staff is the biggest challenge facing accountancy
firms in the US, according to the American Institute of Certified
Public Accountants. Its 2007 Top Management of an Accounting
Practice Issues survey gathered information from a range of
practitioners. Staff retention is a growing concern, especially for
larger practices. The survey found sole practitioners were most
worried about tax complexity.
STANDARDS
UK ethics review concludes
The UK Auditing Practices Board (APB) has conducted a review of its
ethical standards for auditors. It has carried out research,
reviewed third-party research and discussed the issues with
interested parties. As a result, the APB believes standards are
high, proportionate and meet the needs of stakeholders. It said
minor amendments will be made that relate to the implementation of
the EU Statutory Audit Directive, maintaining adherence to the
International Federation of Accountants code, and adding clarity
and assisting the implementation of the standards.
