International Accounting Bulletin | Page 8

World Survey 2014 Survey International Accounting Bulletin ■■ Market Share PWC 19% Mid-tier 33% Deloitte 19% KPMG 13% EY 14% Source: IAB ■■ Average fee split Top 10 networks in 2008 and 2013 (%) 2008 2013 Audit & accounting 53 48 Tax 23 23 Advisory 24 29 2008 2013 52 43 ■■ Average fee split Big Four in 2008 and 2013 (%) Audit & accounting Tax 24 23 Advisory 24 34 ■■ Service Line Fee Split: Audit & Accounting $m 14,760.0 PwC Deloitte 0% 13,100.0 0% EY 10,936.0 0% KPMG 10,210.0 –1% BDO 3,829.2 5% Grant Thornton International 1,958.0 3% RSM 1,861.2 –2% ■■ Service Line Fee Split: Advisory * ■■ Service Line Fee Split: Tax % $m EY 3% 6,946.0 9% Deloitte 6,100.0 12% KPMG 4,970.0 2% RSM 1,095.8 BDO –5% 1,295.0 Grant Thornton International 15% 925.0 2% Baker Tilly International 1,700.9 –3% Baker Tilly International 844.7 –2% Nexia International 1,692.4 4% Crowe Horwath International 743.5 1% Crowe Horwath International 1,574.5 0% Moore Stephens Intenrational 705.4 - Source: International Accounting Bulletin 6 y January 2014 $m % 8,175.0 PwC multinational clients, that includes audits as well as advisory and tax work. A big chunk of our growth has come from the advisory practise. We’ve done M&As that have helped – in the Netherlands, the US and one in the UK and, of course, recently in South Africa with the PKF practice etc.” Most organisations have yet again been affected by the robust US dollar, which has been especially strong against certain currencies from the emerging markets. Baker Tilly International chief executive Geoff Barnes says the network, the eighthlargest, reported an increase in revenues of 3%, “which in the market in which we are operating is good and also we report in US dollars, which is very strong against some currencies”. “In several countries we have seen really good growth in local currency, but when converting to US dollars the numbers were good but not as outstanding,” Barnes says. Baker Tilly International numbers also don’t include the revenues from RSM Tenon in the UK, which Baker Tilly UK bought at the end of the summer in a pre-pack deal. Mainly due to the loss of its only UK firm, RSM reported a 7% decrease in fee income to $3.7bn. RSM chief executive Jean Stephens also says the network cancelled its membership with a Canadian firm, which was based on mutual agreement . Stephens says that the network has seen growth across all regions apart from Africa and the Middle East partly due to conversion rate which brought the revenues down. “The numbers don’t show it, partly because of Tenon, but we had a fantastic year in 2013,” she says. “We have been consistent from quarter to quarter and managed to grow our interna- Source: International Accounting Bulletin Deloitte % 13,200.0 8% PwC 9,153.0 5% KPMG 8,240.0 5% EY 7,947.0 12% Grant Thornton International 1,636.0 19% BDO 1,328.7 7% Crowe Horwath International 805.9 5% Baker Tilly Intenrational 858.6 23% RSM 757.0 –13% Nexia International 612.8 3% Notes: Includes all fees earned from services that are not audit & accounting and tax. Source: International Accounting Bulletin www.InternationalAccountingBulletin.com